Please Utilize! “Outline of Revised Medical Fee Schedule (Effective June 1, Reiwa 8)” | Nishi Online – Japan Medical Association

News Highlights

The Japan Medical Association has released the “Outline of Revised Medical Fee Schedule (Effective June 1, Reiwa 8)”. This document suggests key points for medical M&A and business succession, including preparation for medical fee revisions, planning for mid-to-long-term management and succession strategies, maintaining facility standards and distributing equipment investment burdens through economies of scale, and utilizing tax incentives by transitioning to specific medical corporations or social medical corporations.

M&A Medical Editorial Department’s Perspective

The release of the outline for the medical fee revision effective June 1, Reiwa 8, on Nishi Online is not merely informational; it serves as an opportunity for healthcare institution managers and successors to rethink their concrete business succession and M&A strategies. In particular, the importance of mid-to-long-term strategies that consider the revision cycle is increasing. It is essential to consider more advanced M&A schemes, not just for single-year profit improvement, but also for leveraging economies of scale through group formation (maintaining facility standards, distributing equipment investment burdens) and utilizing tax benefits by transitioning to specific medical corporations or social medical corporations. For example, in strengthening regional healthcare cooperation, integrating multiple clinics or business succession involving functional differentiation can be effective options for mitigating the impact of medical fee revisions and building a sustainable management base. Taking this opportunity of the outline’s release, it is advisable to review your institution’s management strategy and business succession plan in light of the latest medical fee trends and consider the possibility of M&A if necessary.

Points Indicated by This News

• The release of the outline for the medical fee revision effective June 1, Reiwa 8, prompts a review of mid-to-long-term management and succession strategies.
• The significance of M&A for enjoying economies of scale, such as maintaining facility standards and distributing equipment investment burdens through group formation, is increasing.
• Utilizing tax incentives with an eye towards transitioning to specific medical corporations or social medical corporations is becoming increasingly important as a business succession option.
• Business succession involving strengthening regional healthcare cooperation and functional differentiation may contribute to mitigating revision impacts and sustainable management.

Practical Questions Arising from This News

• Which specific items in this revision outline are likely to significantly impact our institution’s revenue?
• When considering M&A involving group formation or changes in corporate status, what scale and level of cooperation are desirable?
• Is it possible to conduct concrete simulations for business succession schemes that utilize tax incentives?

If You Feel “Should I Consult Too?”

If you are contemplating whether to begin concrete planning for your institution’s management strategy and future business succession following the release of this medical fee revision outline, please consult with an expert first. Specifically, having the impact of the revision on management analyzed, the effectiveness of M&A schemes such as group formation or changes in corporate status evaluated, and the tax advantages and disadvantages assessed from an objective perspective will help resolve vague anxieties and reveal concrete action plans.

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