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 for further accelerating functional differentiation in acute and highly acute care.In particular, the stricter case volume and severity requirements for highly acute care will further raise the hurdle for maintaining facility standards for mid-sized regional hospitals.

From an M&A perspective, this regulatory change will promote a dichotomy 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 functions through the utilization of regional medical collaboration promotion corporations or participation in large groups. When considering succession, the "future suitability" of whether one's own hospital's acute care requirements can be maintained after the revision will be a decisive indicator for determining 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, without waiting for the 2026 implementation.An early decision before the risk of functional maintenance arisesis the best strategy to protect the hospital's role in the region and maintain staff employment.