Abstract
By international standards, Germany maintains oversized bed capacities that are spread across too many hospitals that are often also too small. It is the job of the federal states to adjust the current structure. However, they shy away from the political resistance of those directly affected, believing it is easier to let things run their course. In order to cover the costs of maintenance, hospitals often provide more treatment than is medically necessary. Federal Minister Lauterbach seeks to remedy this shortcoming, which has its true roots in inadequate planning incentives, by reforming the remuneration of hospital services. The articles shows that the goals of the reform cannot be achieved in the proposed way.