With the launch of the Transformation Fund (2026–2035) in January 2026, Germany has taken a significant step toward modernising its healthcare system. With unprecedented scale and ambition, the programme positions Germany as a European frontrunner in digital health transformation, reshaping how care is delivered, accessed, and experienced across the nation.
In this blog, we highlight the programme’s ambitions and reflect on what to expect in 2026 and beyond.
Unprecedented Scale: €50 Billion Over a Decade
The Transformation Fund is designed to provide up to €50 billion over ten years (2026–2035) to support the structural modernisation of Germany’s hospital sector, including investments in digital infrastructure, interoperable platforms, and innovative care approaches — a core component of the country’s hospital reform.
Its financing is structured through a combination of federal and state contributions, reflecting shared responsibility for modernising care delivery across the country.
An immediate €4 billion has also been allocated to help hospitals address urgent modernisation needs, particularly in digital infrastructure, cybersecurity, and networked care delivery, bridging the gap between current challenges and long-term reform.
A System Under Pressure: the Urgency for Transformation
Germany’s healthcare system, consuming nearly 13% of the country’s GDP, faces mounting pressures from demographic change and workforce shortages. By 2035, an estimated 90,000 doctors are expected to retire, and by 2040, the nursing shortage could reach up to 1.9 million professionals.
Despite high levels of investment, fragmented digital systems continue to drive inefficiencies, duplicate examinations, and rising administrative costs. Without comprehensive digital modernisation, both the quality and accessibility of care are at significant risk. At the same time, these pressures are accelerating the shift toward data-driven efficiency, preventative care models, and new forms of collaboration.
Oliver Tuszik, Cisco Executive Vice President of Global Sales & Nina Warken, German Federal Minister of HealthDigital Infrastructure as the Foundation of Transformation
Digital infrastructure lies at the heart of Germany’s new healthcare strategy. A major milestone was reached at the end of 2025, when all insured persons were made eligible for an electronic patient record (ePA), with doctors and other healthcare providers legally required to use ePA-ready software and to populate the record with structured data from care processes; a change embedded in national digital health regulations.
The ePA provides a secure, standardised platform connecting patients, healthcare providers, and researchers. It supports seamless data exchange and aligns with the European Health Data Space (EHDS), laying the foundation for cross-border research, innovation, and improved continuity of care.
For patients, the ePA strengthens transparency and personal control over health data. For clinicians, it offers a more comprehensive view of medical histories, supporting better diagnostics, personalised treatment, preventative care, and data-driven precision medicine.
Six Digital Priorities for the New Decade (2026–2035)
To translate ambition into measurable progress, Germany’s healthcare transformation focuses on six strategic digital priorities:
- Interoperable Data Platforms
By implementing open standards such as Fast Healthcare Interoperability Resources (FHIR), a globally recognised standard for the structured and secure exchange of health data, Germany aims to eliminate longstanding data silos. Interoperability is essential for high-quality analytics, AI at scale, and cost control, and must be enforced through binding standards and transparent governance, not left to voluntary adoption. Crucially, interoperability is not only a technical challenge, but also an organisational and governance one, requiring coordination across institutions, regions, and systems. - Telemedicine and Networked Care
Digital tools such as video consultations, tele-intensive care units, and remote monitoring are becoming integral to care delivery. These solutions help bridge gaps in underserved and rural areas while improving convenience and continuity of care for patients. - Flexible IT Models
Hospitals and clinics are increasingly adopting service-based IT models that allow digital infrastructure to scale dynamically. This flexibility enables faster adoption of new technologies without heavy upfront investments and supports agile responses to emerging healthcare challenges. - Cloudification and Data Privacy
Migrating critical health IT systems to the cloud enhances operational resilience, disaster recovery, and cost efficiency. Germany’s strict data-protection framework ensures that patient privacy and data sovereignty remain central to this transformation. - Cybersecurity and Resilience
As digitalisation accelerates, so do cyber threats. Beyond data protection, resilience and “health security” are becoming strategic priorities, ensuring clinical systems remain operational during crises, cyber incidents, or infrastructure failures. - AI in Healthcare Delivery
Artificial intelligence is being used to streamline administrative processes, support clinicians with faster diagnostics, and uncover new insights from health data. A key near-term impact lies in reducing documentation and administrative burdens, enabling clinicians to spend more time with patients.
Empowering the Workforce
Technology alone will not deliver transformation. Success ultimately depends on people — clinicians, nurses, and support staff — embracing new tools and ways of working. Continuous professional development, including data literacy, cybersecurity awareness, and AI-assisted decision-making, is being rolled out at scale. Initiatives such as the Cisco Networking Academy help equip healthcare professionals with the digital skills needed to confidently operate in increasingly connected care environments.
The Transformation Fund is also fostering innovation through collaboration. Public-private partnerships are encouraged to accelerate the development and deployment of new solutions. Start-ups, academic institutions, healthcare providers, and technology partners are working together to pilot new models of care and share best practices across regions.
What Else Will Change in 2026?
Beyond hospital modernisation and digital infrastructure, several additional reforms will shape Germany’s healthcare and care system in 2026, such as:
- Doctors and hospitals are now required to use software compatible with the electronic patient record (ePA); non-compliance may affect billing eligibility.
- Nurses and care professionals will be able to take on expanded medical responsibilities, supporting more flexible and efficient care delivery.
- New regulatory frameworks will accelerate clinical trials and the approval of innovative medicines.
From Vision to Velocity
The coming decade marks a turning point for Germany’s healthcare system. By investing in secure, interoperable infrastructure and transparent governance, the Transformation Fund is building the groundwork for an AI-ready, patient-centred ecosystem that can scale with trust.
Implementation will vary across regions, making coordination, shared standards, and strong partnerships critical to achieving nationwide impact. As reforms move from vision to implementation, Germany has the opportunity to set new benchmarks for digital health — creating a healthcare system that is more resilient, more equitable, and ultimately, more human.
