Social Security Council Discusses Social Security System Reform and FY2026 Budget; Calls for Response to Rising Prices and Wages (April 27, 2026) – Social Insurance Research Institute

News Highlights

At the Social Security Council meeting on April 27, 2026, discussions focused on social security system reform and the FY2026 budget. In particular, responding to rising prices and wages was identified as an urgent issue, suggesting the need for securing financial resources and improving efficiency to maintain the system. For the management of medical institutions, closely monitoring the impact of these external environmental changes on operations provides important insights for future business continuity planning.

M&A Medical Editorial Department’s Perspective

The discussion at the Social Security Council regarding responses to rising prices and wages is a significant signal that could directly impact the management of medical institutions. This discussion is in anticipation of the FY2026 budget compilation and raises concerns about its ripple effects on medical and long-term care fee revisions. Especially as rising labor costs and prices put pressure on operations, a situation where the increase in revenue per treatment does not keep pace with cost increases further raises the hurdle for business continuity for medical institutions facing a lack of successors. This news should not be dismissed as merely a discussion about the system, but rather as an opportunity to specifically analyze one’s own financial structure, particularly the ratio of labor costs and material costs, and future revenue projections. When considering third-party succession, developing a business plan that incorporates these macroeconomic changes is essential.

Points Raised by This News

• The response to rising prices and wages became the central focus of the FY2026 budget discussions.
• The increasing risk of a divergence between rising costs and revenue projections in the management of medical institutions.
• The weight of the impact of medical and long-term care fee revisions on management decisions.
• The necessity of concretizing business continuity plans in light of changes in the external environment.

Practical Questions Arising from This News

• To what extent could rising prices and wages specifically affect medical fees?
• Can financial measures be expected in the FY2026 budget compilation to support the management of medical institutions?
• If cost increases cannot be accommodated, how will the conditions for third-party succession (e.g., transfer price) change?

If You Feel “Should I Consult Too?”

If you are concerned about whether your institution’s financial balance can be maintained in the future amidst continued high prices and rising labor costs, please take this news as an opportunity to consult with us. Especially if you are considering future business succession due to a lack of successors, this is a good opportunity to concretely discuss a realistic business plan that considers changes in the external environment and the possibility of third-party succession with experts.

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