3rd Working Group Meeting on Application of ICD

News Highlights

Materials from the 3rd Working Group Meeting on the Application of ICD-11 Compliant Statistical Classification for Vital Statistics have been released. This initiative aims to review the classification methods for Japan’s vital statistics in preparation for the transition to ICD-11, the international standard for disease classification. Compliance with ICD-11 is expected to improve international comparability and enable more detailed cause-of-death analysis. The materials released this time show the progress of concrete discussions towards its application.

M&A Medical Editorial Department’s Perspective

While the technical discussion on applying ICD-11 compliant statistical classification to vital statistics may seem unrelated to the management of medical institutions at first glance, this change in classification standards could potentially impact the analysis of medical institutions’ clinical performance, disease prevalence rates, and mortality rates in the future. In particular, there will likely be increasing situations where data accuracy and comparability are questioned, such as in the formulation of future healthcare policies, research and development in specific disease areas, and even during due diligence in M&A. For instance, ICD-11 allows for more detailed classification, which could enable a more accurate valuation of medical institutions with strengths in specific specialties. Management needs to monitor such macro-level changes and their potential impact on their institution’s management strategy and business succession from a medium to long-term perspective.

Key Discussion Points from This News

• Compliance with ICD-11 ensures improved accuracy and international comparability of future medical data analysis.
• Refinement of cause-of-death classification enhances the quality of data that forms the basis for public health policies and disease countermeasures.
• More detailed data-based evaluations will be possible during due diligence in M&A of medical institutions.
• Alignment with international standards will provide a foundation for promoting international collaboration in medical technology and research and development.

Practical Questions Arising from This News

• When is the transition to ICD-11 expected to be completed?
• What impact will this classification change have on the format of data our hospital collects and submits?
• Will ICD-11 compliant data potentially affect the evaluation of medical institutions or subsidies in the future?

If You Feel “Should I Consult?”

Compliance with international standards (ICD-11) for vital statistics suggests an advancement in the utilization of medical data. This could lead to improved accuracy in the future evaluation of medical institutions and due diligence in M&A. If you are interested in how your institution’s clinical performance and disease data will be evaluated in the future, or what data will be important during business succession, please consult with experts. Early preparation can lead to smooth business succession and a review of your management strategy.

M&A Medical (CentralMedience Inc.) is an M&A support institution certified by the Small and Medium Enterprise Agency, supporting the business succession of medical corporations, hospitals, and clinics on a full success fee basis. Consultations are kept strictly confidential. Free consultations are available here.