[Expert’s View] “Healthcare in Regions Facing Medical Fee Revisions and Population Decline” by Tsuyoshi Ono – Japan Medical Journal

Nihon Iji ShimpoのTsuyoshi OnoThis article by Mr. Ono highlights the current situation and challenges of regional healthcare facing the dual pressures of medical fee revisions and population decline. Particularly as maintaining the healthcare provision system in rural areas becomes difficult, it suggests that for healthcare institution managers, it is essential not only to manage daily practice but also to consider mid-to-long-term management strategies, especially from the perspective of business succession and M&A.

Medical fee revisions tend to be applied uniformly nationwide, without fully reflecting regional circumstances or the characteristics of medical institutions. In areas with declining populations, a decrease in patient numbers and pressure on revenue from revisions proceed simultaneously, making management even more challenging. Under these circumstances, it is extremely difficult for individual medical institutions to survive alone.economies of scaleM&A, such as mergers or group formations that allow for the sharing and optimization of management resources, becomes a powerful option to solve challenges like maintaining facility standards, distributing the burden of investment in high-cost medical equipment, and securing specialized personnel.

For healthcare institution managers facing succession issues, this articlesends a strong message that business succession through M&A, viewed from the perspective of continuing regional healthcare, should be actively considered, not just the option of 'business succession = closure'.While closely monitoring trends in medical fee revisions, calmly analyzing one's own institution's management status and future vision, and developing a business succession strategy that includes early consultation with experts will likely be the realistic path to preserving regional healthcare.