MC Plus Material – 03_Overview of the FY2026 Medical Fee Revision – 3. Acute and Highly Acute Inpatient Care – Page 8 – Center for Health Policy Information

Discussions towards the FY2026 medical fee revision will bea turning point that further accelerates functional differentiation in acute and highly acute care.In particular, the stricter criteria for case numbers and severity in highly acute care will significantly raise the hurdle for maintaining facility standards for mid-sized regional hospitals.

From an M&A perspective in the medical sector, this regulatory change will promote a polarization between"buyers of function"and"sellers fighting for survival".It is anticipated that cases of hospitals unable to maintain acute care functions will increase, transitioning to post-acute care or rehabilitation through the utilization of regional healthcare collaboration promotion corporations or participation in large groups. When considering succession, the "future viability" of whether one's own institution can maintain its acute care requirements after the revision will be a decisive indicator that determines the transfer price and the success of matching.

Executives struggling with succession issues should explore strategic partnerships while they can still maintain current high medical fee levels, rather than waiting until the 2026 implementation.An early decision before the risk of losing functional maintenanceis the best strategy to protect the hospital's role in the region and maintain employment for its staff.