Despite First Major Increase in Medical Fees in 30 Years, Rural Hospitals “Cannot Cover Deficits” Due to Triple Threat of High Prices, Population Decline, and Low Birthrate; Lack of Government Consideration <Regional Healthcare at its Limits

News Highlights

Despite a significant increase in medical fees for the first time in 30 years, rural hospitals in Hokkaido are still unable to escape deficit operations due to the “triple threat” of soaring prices, population decline, and low birthrate, as reported by Hokkaido Shimbun Digital. With insufficient consideration from the government, maintaining regional healthcare is an urgent issue.

M&A Medical Editorial Department’s Perspective

Medical fee revisions are the most crucial policy that determines the sustainability of the healthcare delivery system. Even if the current revision rate is described as a significant increase for the first time in 30 years, as the Hokkaido Shimbun report indicates, it has not been enough to overcome the cost increases due to soaring prices, and more importantly, the structural problems of population decline and low birthrate in the region. Particularly for rural hospitals, the challenge is to continue providing efficient and high-quality medical care within a limited patient base. In such circumstances, healthcare institutions whose経営 sustainability is in question may find that proactively considering options such as business succession or M&A, rather than merely awaiting the outcome of medical fee revisions, can be a realistic solution to prevent the lights of regional healthcare from going out. For example, external factors such as the advancement of integrated community care systems and reforms to physician working hours cannot be ignored in their impact on hospital management.

Points Raised by This News

• The reality that medical fee revision rates alone cannot solve the structural management challenges of rural hospitals (population decline, high prices).
• The “triple threat” faced by rural hospitals in Hokkaido suggests a critical situation common to similar regional hospitals nationwide.
• From the perspective of maintaining regional healthcare, business succession and M&A, rather than closure, can be the best option for patients, staff, and the local community.
• Given the current lack of sufficient policy consideration from the government, the necessity for healthcare institutions themselves to proactively develop management strategies is increasing.

Practical Questions Arising from This News

• To what extent can the increase in medical fees absorb the rise in costs?
• Are there specific business models for continuing hospital management in regions with declining populations and birthrates?
• If deficits continue, is it realistically possible to lift personal guarantees in M&A negotiations?

If You Feel “Should I Consult Too?”

If your hospital, like the rural hospitals in Hokkaido, is struggling with increased costs due to soaring prices and a decrease in patients caused by regional population decline and aging, it may be difficult to improve management solely through medical fee revisions. If deficits are ongoing or you feel future management anxiety, consulting with experts in business succession or M&A early on will provide an opportunity to consider the optimal options tailored to your situation (e.g., business transfer, mergers, support for successor training). Let’s start by accurately grasping the current management situation.

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