FY2020 Medical Fee Revision Decision Finalized – Japan Medical Association

News Highlights

The decision regarding the FY2020 medical fee revision has been finalized. This revision provides important insights for the management strategies and business succession of medical institutions. Key discussion points include the necessity of mid-to-long-term management and succession strategies that consider the revision cycle, the economies of scale through group participation (maintaining facility standards and dispersing the burden of capital investment), and the utilization of tax schemes such as transitioning to specific medical corporations or social medical corporations.

M&A Medical Editorial Department’s Perspective

The FY2020 medical fee revision decision is not merely a change in regulations but serves as a catalyst to influence the very management structure of medical institutions. In particular, the importance of flexible management strategies that can adapt to changes in each revision cycle, and the business succession plans that support them, have been highlighted. The trend towards pursuing economies of scale through group formation is expected to accelerate to maintain facility standards and alleviate the burden of high capital investment. Furthermore, transitioning to specific medical corporations or social medical corporations is a crucial point for both management and successors to consider as an option for building a more stable management foundation while receiving tax benefits. To adapt to these changes, early collaboration with experts is essential.

Points Indicated by This News

• The FY2020 revision decision prompts the restructuring of mid-to-long-term management and succession strategies.
• The benefits of maintaining facility standards and dispersing capital investment burdens through group participation will expand.
• Transitioning to specific medical corporations and social medical corporations is drawing attention as part of utilizing tax incentives.
• The development of a more robust management foundation is required to navigate the revision cycles.

Practical Questions Arising from This News

• What specific impact is expected on our clinic’s revenue structure due to this revision?
• What kind of collaboration schemes can be considered to maximize the benefits of group formation?
• Under what conditions is it possible to transition to a specific medical corporation or a social medical corporation?

If You Feel “Should I Consult Too?”

Those who feel that the FY2020 medical fee revision decision will have a concrete impact on their clinic’s management strategy or business succession plan should consider consulting with experts. Especially when considering pursuing economies of scale through group formation or utilizing tax schemes, early collaboration with experts (M&A intermediaries, tax accountants, etc.) will lead to future management stability and smooth business succession.

M&A Medical (CentralMedience Inc.) supports the business succession of medical corporations, hospitals, and clinics as a Small and Medium Enterprise Agency-certified M&A support institution, with a complete success fee system. Consultations are accepted with strict confidentiality. Free consultation here