The Gelsenkirchen Administrative Court (VG) has ruled that the contractual penalty of 250,000 euros for breaching the rural doctor quota is, in principle, lawful (Case No.: 6 K 2983/24 et al. of 6 October 2026). Three doctors brought legal proceedings against this flat-rate contractual penalty.

They had been offered a place on a medical degree programme under the ‘rural doctor quota’ scheme, which had recently been introduced in North Rhine-Westphalia, even though they did not meet the required average A-level mark for admission. In return, they undertook to work for at least ten years in rural areas – where the state had identified a particular public need – after completing their degree and further training as GPs. The contract stipulates a penalty of 250,000 euros for breaches of this agreement.

In the Administrative Court’s view, the contractual penalty is lawful because compliance with the contractual obligations serves the general public interest in ensuring that GP care is available in rural areas as well. Compliance is also important in terms of freedom of choice of profession, as other applicants would not have been offered a place.

Nevertheless, two of the claimants were partially successful and do not have to pay a contractual penalty. They were able to undertake further training as paediatricians and work in this field, even though the state had no longer identified any particular need for such specialists. The Administrative Court found that these older contracts had been worded in an ambiguous manner in this respect.

„Regulating employment in subjects where there is a shortage of teachers or in sectors facing a skills shortage can be a means of ensuring that public services and essential healthcare functions are maintained, even in the face of demographic change. The fact that these contractual arrangements can also be applied to admission to medical school is to be welcomed. Even though the wording used in the contract terms at the outset was unclear and works to the detriment of the state, this provides legal certainty for the future,“ notes Rechtsanwalt’s Prof. Dr Klaus Herrmann. He advises on professional regulatory issues relating to the liberal and regulated professions.