[Following the Revision of the Medical Care Act, etc.] Guidelines for Considering the Utilization of the Certified Medical Corporation System – BATONZ

Medical Act Revision and the Certified Medical Corporation System: A Move Encouraging the Restructuring of Management Strategies

This information from BATONZ regarding guidelines for utilizing the certified medical corporation system suggests a turning point in management strategy for medical institution executives, going beyond a mere explanation of the system. In particular,"Mergers and group formations aiming for economies of scale"being listed as an option is significant. This reflects the current situation where an increasing number of medical institutions find it difficult to maintain independent operations due to changes in the external environment, such as recent revisions to medical fees, stricter facility standards, and adjustments to nursing staffing ratios.

From the perspective of medical M&A and business succession, the certified medical corporation system can be a powerful scheme for"strengthening the management base and aiming for new value creation by collaborating and integrating multiple medical institutions while maintaining non-profit status."For example, benefits that are difficult to achieve independently, such as joint capital investment, personnel development, and even sharing of advanced medical equipment, may be realized. Furthermore, strategic group formation with an eye towards"optimization of tax schemes,"such as transitioning to specific medical corporations or social medical corporations, can also be considered.

For medical institution executives facing succession issues or those aiming for long-term management stability,"considering the certified medical corporation system as an option, while aligning it with their institution's future vision, presents an excellent opportunity."Deepening understanding of the system and collaborating with experts to formulate a long-term business succession and development strategy early on will lead to the establishment of a sustainable healthcare delivery system.