Hospital Future Act (KHZG) in Public Procurement 2026

Definition: The Hospital Future Act (Krankenhauszukunftsgesetz – KHZG) is a German federal law from 2020 that provides an investment fund of EUR 3 billion for digitalising hospitals, defining eligible funding measures that are tied to compliance with public procurement requirements.

Last updated: January 2026 · Legal basis: KHZG (BGBl. I 2020, p. 2208); KHZG eligible measures; GWB/VgV; KHZF funding decisions

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The KHZG as a digitalisation driver

The Hospital Future Act (KHZG) of October 2020 provides the German healthcare sector with EUR 3 billion from the Hospital Future Fund (KHZF) for investments in the digital infrastructure and security of hospitals, supplemented by co-financing shares from the federal states and hospitals. The programme is aimed at creating modern emergency departments, electronic patient records, digital nursing documentation, telemedicine and IT security infrastructure.

The application period at the KHZF has ended; the funds are being drawn down and deployed over the years 2021–2025.

Public procurement requirements

Since KHZG funds constitute public subsidies from the federal and state level, the procurement financed with them is subject to public procurement law, provided the conditions of contracting-authority status and the thresholds are met. Hospitals classified as public contracting authorities within the meaning of § 99 GWB (in particular charitable bodies and public bodies) must put KHZG-financed IT procurement out to tender under procurement law.

Private hospital operators may also, depending on their financing structure, qualify as public contracting authorities where they are predominantly financed from public funds.

Eligible measures under the KHZG

The KHZG defines 21 eligible measures (FT) that delineate the investment areas eligible for funding.

Selected eligible measures:

• FT 1: Emergency departments (digital waiting time and patient flow management)
• FT 2: Patient portals (electronic admission, discharge)
• FT 3: Electronic documentation (clinical workplaces)
• FT 7: Telemedical networks
• FT 10: IT security (information security, emergency concepts)
• FT 11: Information security measures

Practical implementation challenges

Implementing KHZG projects under public procurement law is a particular challenge for many hospitals, as they face complex IT procurement, short deadlines and extensive evidence requirements. Common practical issues include:

• Lack of procurement experience in non-profit hospital operators
• Difficulties in drafting procurement-compliant technical specifications
• Recovery risks in case of procurement infringements (state-aid consequences)

FAQ

Must all hospitals tender KHZG funds under procurement law? Only public contracting authorities and authorities subject to procurement law; private hospitals without predominantly public financing may, under certain circumstances, procure under simplified conditions, but should obtain legal advice.

What are the consequences of a procurement breach in KHZG-financed projects? Recovery of the funding by the KHZF, possible review proceedings brought by unsuccessful bidders and administrative-law consequences.

Is the KHZG still relevant for new tenders in 2026? Applications at the KHZF have closed; the use of funds and accounting for the approved subsidies continues until end of 2025/2026, so procurement-law issues remain topical.

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Last updated: January 2026 All information provided without guarantee. For legally binding advice, please consult a law firm specialising in public procurement law.