French public hospital deficit at third highest level in 20 years, study shows

The overall deficit of public hospitals is thus expected to reach 2.1 per cent of revenue in 2025, amounting to "around 2.3 billion euros”, according to this study by Drees - the public statistics agency for social affairs.

The figure is based on the "provisional accounts” of the institutions at the end of June 2026.

This deficit represented 2.7 percent of revenue in 2024, amounting to €2.9 billion – a level not seen since 2005, the starting point for these observations.

In 2025, operating costs for public hospitals continued to rise, albeit at a "slower pace than in 2024", but the accounts are still burdened by "interest payments on loans", according to Drees.

The rise in staff wage costs, in particular, has slowed: +3.0 percent (+€1.9 billion), following +4.1 percent (+€2.5 billion) in 2024, the year in which pay rises were implemented.

Despite the investment grants linked to the government's Ségur healthcare reform, "investment by public hospitals has declined": it stood at 4.8 percent of revenue in 2025 (€5.4 billion), down from 5.1 per cent in 2024 (€5.5 billion).

Funding pledges

The Ségur healthcare agreements, signed in July 2020, provide for funding to support investment by healthcare facilities and residential care homes for the elderly (Ehpad).

The government has pledged €19 billion over ten years, of which 9 billion is "intended to directly finance new investments" and €6.5 billion is earmarked for debt reduction, according to Drees.

In May 2026, the Ministry of Health announced that it would release a further €6 billion over the period 2026 – 2036 to "support" investment projects.

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Furthermore, general and paediatric emergency departments in hospitals recorded 21.5 million visits in 2025, a figure that continues to rise (+0.8 percent), "despite the ongoing roll-out of the healthcare access service" – the new Samu service, which involves GPs and is designed to divert some patients away from hospital.

However, this rise in visits is observed "in a small majority of regions, notably in Grand Est and Hauts-de-France" and in several overseas territories, including French Guiana, the study states.

Conversely, the number of visits is falling in Bourgogne-Franche-Comté, Corsica and Guadeloupe.

(with AFP)