As in most European countries, the main motor for reform in the German Health Care system has been cost-containment. However, the latest reform initiatives have been increasingly concerned about the quality of Health Care. A law enacted at the beginning of 2004, which creates the “Institute for Quality and Efficiency in Health Care”, culminates an offensive in favour of improving the quality of the health system. In this paper, we first give a historical introduction regarding the origins and organization of the German Health Care system. Subsequently, we present the most relevant interventions to improve quality and we finally summarize the current discussion on the future model of financing.