Impact of Revised Medical Fees for Polypharmacy in Japan on Long

Key News Points

The 2024 medical fee revision introduced a penalty for polypharmacy of sleep medications. This encourages limitations on prescription duration and reduction in co-prescribed drugs, even in cases where long-term prescriptions were previously common. An article on CareNet.com discusses the impact of this revision on the management of medical institutions, particularly for departments focused on sleep medication prescriptions, and presents discussion points from an M&A and business succession perspective. Specifically, it mentions responding to the medical fee revision, stabilizing management through economies of scale, and utilizing tax schemes.

M&A Medical Editorial Perspective

The penalty for polypharmacy of sleep medications in the current medical fee revision is not merely a measure to suppress drug prices but can be seen as a symbolic event influencing the management strategies of medical institutions and, consequently, the nature of business succession. Particularly for clinics and psychiatric/mental health departments that handle a large number of patients with sleep disorders, the incentives for long-term prescriptions, which have been a stable source of revenue, are declining, potentially forcing a review of their revenue structure. For example, if there was a monthly prescription revenue of 2 million yen for sleep medications, a portion of this could become a revenue decrease depending on the calculation standards after the revision. Such environmental changes can accelerate consideration of M&A for business continuity or expansion when independent management becomes difficult. Reducing the burden of maintaining facility standards through group affiliation and utilizing tax schemes with a view to transitioning to specific medical corporations or social medical corporations will not be abstract discussions of “economies of scale” but urgent considerations for managers and successors as concrete measures for revenue improvement and tax burden reduction.

Discussion Points Indicated by This News

• The penalty for polypharmacy of sleep medications directly impacts the revenue structure of outpatient-focused clinics.
• For departments centered on long-term prescriptions, revenue simulations and countermeasures after the revision are essential.
• Distributing the costs of maintaining facility standards through group affiliation is an effective measure to reduce the burden of independent management.
• Transitioning to specific medical corporations or social medical corporations is an option that balances tax benefits with business succession plans.

Practical Questions Arising from This News

• What is the estimated extent of revenue decrease due to this penalty measure?
• Are there similar movements in medical fee revisions for drugs other than sleep medications?
• If grouped, what criteria are used for integrating medical corporations?

If You Feel “Should I Consult Too?”

Medical institution managers who are being forced to review their sleep medication prescription policies due to this medical fee revision, or who are concerned about future revenue decreases, should consider the options of M&A for business succession or group affiliation. By simulating concrete solutions for when independent management becomes difficult, and for経営 stabilization and tax benefits through group participation, with experts, you can take a confident step towards the future.

M&A Medical (CentralMedience Inc.) supports the business succession of medical corporations, hospitals, and clinics on a full 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