Japan Medical Association Urges Proactive Calculation of Base

News Highlights

The Japan Medical Association is calling on medical institutions to proactively calculate base-up evaluation fees to achieve wage increases that can catch up with other industries. This is a system designed with the expectation that the newly established base-up evaluation fees in the medical fee revision will be used to cover increased personnel costs. The key points of the news include securing human resources through group-wide recruitment branding and recruitment agencies, improving retention rates through training programs and career path sharing, and reducing the burden on the front lines by utilizing head office functions such as labor, accounting, and IT.

M&A Medical Editorial Department’s Perspective

The background to the Japan Medical Association’s encouragement of proactive calculation of “base-up evaluation fees” is the severe labor shortage in medical institutions and the resulting lag in wage levels. Particularly in regional clinics and small to medium-sized hospitals, securing personnel is an urgent issue, not only for doctors and nurses but also for administrative and care staff. The calculation of base-up evaluation fees is not just about increasing personnel costs, but rather can be a catalyst for “organizational strengthening.” For example, a medical corporation with multiple medical institutions under its umbrella could strengthen recruitment branding across the group and standardize training programs, creating a scheme to overcome recruitment and retention challenges that would be difficult for individual medical institutions. The efficiency of back-office operations through head office functions also suggests the possibility of allocating the freed-up resources to improving the quality of medical care and further increasing wages, while simultaneously reducing the burden on the front lines. Whether or not this evaluation fee can be fully utilized will likely determine the future competitiveness of medical institutions.

Points Raised by This News

• The calculation of base-up evaluation fees can be an opportunity for organizational strengthening, not just an increase in personnel costs.
• The possibility that group-wide recruitment branding and agency services can enable personnel acquisition that is difficult for individual medical institutions.
• Specific benefits of sharing training programs and career paths contributing to improved retention rates for healthcare professionals.
• The potential for consolidating back-office operations through head office functions to reduce the burden on the front lines and improve the quality of medical care.

Practical Questions Arising from This News

• Specifically, how much of a wage increase is possible when base-up evaluation fees are calculated?
• Is it practically feasible for small clinics to introduce recruitment agencies and utilize head office functions?
• Are there specific examples regarding the calculation requirements for evaluation fees and the measurement of effects after calculation?

If You Feel “Should I Consult Too?”

Have you accurately grasped your institution’s personnel cost structure and the disparity in wage levels compared to other industries? Calculating base-up evaluation fees is an excellent opportunity to take advantage of medical fee revisions and promote talent acquisition and retention. M&A Medical supports the formulation of comprehensive management strategies, including the possibility of calculating evaluation fees based on your institution’s current situation, improving recruitment and management efficiency through group formation, and even future business succession. Please start by consulting us for a current situation analysis.

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