„Ja, es wird teurer“: Babler Defends Rising Healthcare Costs in Austria

„Ja, es wird teurer“: Babler Defends Rising Healthcare Costs in Austria Vice-Chancellor Babler defends rising healthcare costs in Austria as necessary. Reform partnership brings primary care centres and specialist clinics – what it means for patients. Topics: News, Healthcare, Politics.

Austrian Vice-Chancellor Andreas Babler (SPÖ) has openly defended rising healthcare costs in Austria. „Ja, es wird teurer“ — „Yes, it will get more expensive“, he stated in an interview on Ö1’s „Im Journal zu Gast“. Increasing life expectancy and expensive medications will drive costs even higher — but medical services must remain accessible to everyone. The recent agreement of the „Reformpartnerschaft“ (Reform Partnership) between the federal government, states, and municipalities is meant to relieve the existing structures.

What Babler Said in the Ö1 Interview

Speaking on Austrian national radio, Babler emphasised that high healthcare spending is necessary. Rising life expectancy and increasingly expensive medications will continue to push Austria’s healthcare costs upward in the coming years. “The services must be available to everyone,” the SPÖ leader made clear.

Criticism of the Reformpartnerschaft agreement was something Babler could not understand. What matters to him is the substance: “Things have to get noticeably better in people’s lives in these areas.” After tough discussions, compromises and joint solutions were reached.

Health Minister Korinna Schumann (SPÖ) confirmed that hospital closures are not on the agenda. “Reforms in the healthcare system naturally cause concern for many people. We understand that,” she stated. However, hospital closures “were neither planned nor part of the discussion throughout the entire reform process.”

Reformpartnerschaft: What Was Actually Agreed

In the early hours of Wednesday morning, the federal government, states, and municipalities reached a basic agreement. The Reformpartnerschaft covers not only healthcare but also education, energy, and administration. The healthcare reform focuses on two key measures:

1. Expansion of Primärversorgungseinheiten (PVE) — primary care centres. These health centres are meant to bundle general outpatient care and serve as the first point of contact for patients. By 2040, Austria plans to establish 600 PVEs, including centres specialising in paediatrics and gynaecology.

2. Creation of new jointly financed Facharztzentren — specialist outpatient centres. These facilities are designed to bridge the gap between private specialists and hospital outpatient departments. Small hospitals will not be closed, Babler emphasised — instead, additional facilities will be created.

The „Versorgungsatlas“: Better Medicine for Everyone

A central element of the reform is the so-called „Versorgungsatlas“ (healthcare supply atlas). Babler described this concept as a way to provide “the best care everywhere” — the “Best Point of Care”, without outpatient fees or higher deductibles. The goal is clear: moving away from Zweiklassenmedizin (two-class medicine) toward equal healthcare access for all segments of the population.

Planning and management of healthcare services will now be carried out jointly and more bindingly between the federal government and the states. In case of disputes, arbitration procedures are planned, though their details remain to be worked out.

The idea of Gesundheitsregionen (health regions) to resolve the so-called “guest patient dispute” — where states argue over costs for patients from other states — has been dropped. Minister Schumann confirmed that this proposal will not be pursued further, meaning the issue remains unresolved for now.

Rising Healthcare Costs: The Numbers

The debate over rising healthcare costs in Austria is nothing new. According to Statistics Austria, current healthcare expenditure in 2025 exceeded the €60 billion mark for the first time, reaching approximately €61.3 billion. This corresponds to 11.9% of GDP — an increase of €3.5 billion or 6.1% compared to 2024.

The public share — spending by the federal government, states, municipalities, and social insurance carriers — stood at €46.4 billion or 75.6% of total current healthcare spending. As the Austrian Economic Chamber (WKO) notes in its health statistics, costs have been rising significantly faster than GDP for years. Personnel costs in the hospital sector have been particularly steep: in the Vienna Health Association alone, they rose by 8.9% in 2023 to €2.6 billion.

Opposition Reactions: „Reförmchen“ Instead of Reform

The opposition was quick to criticise Babler and the agreement. Sigrid Maurer, deputy club chairwoman of the Greens, called the government’s work “unsatisfactory”. “The much-vaunted Reformpartnerschaft brings only minor tweaks,” Maurer said. Budget cuts would hit the middle of society, while the super-rich continue to avoid paying their fair share on inheritance.

Michael Schnedlitz, Secretary-General of the FPÖ, was even harsher. He accused Babler of “trying to sell Austrians a dummy”. The VAT reduction on selected food items is “a drop in the ocean that will drown entrepreneurs in a swamp of bureaucracy”.

What Does This Mean for Patients?

For patients in Austria, several changes are on the horizon. The expansion of Primärversorgungseinheiten is intended to improve local healthcare and reduce long waiting times in hospital outpatient departments. The new specialist centres will provide specialised care closer to home.

However, the exact financing of many plans remains open. The initial funding for the specialist centres will only be clarified during the next fiscal equalisation negotiations between the federal government and the states.

The Reformpartnerschaft has delivered. Because right now, people need to be able to rely on Austria. They have a right to the best medical care, excellent education, and affordable energy prices.

— Andreas Babler, Vice-Chancellor of Austria (SPÖ)

If you want to understand how the Austrian healthcare system works, check out our guide on health insurance in Austria — how to register, what it covers, and what it costs.

The rising healthcare costs in Austria remain one of the biggest fiscal challenges for the years ahead. The Reformpartnerschaft is a first step — whether it will be enough will become clear in the next round of negotiations.