Revision of the Ordinance on Medical Care Fees Regarding Practicable Department Names

News Highlights

The news regarding the revision of the Ordinance on Medical Care Fees, announced on May 25, 2026, primarily focuses on changes to the names of practicab le medical departments. This revision includes points that affect the management and business succession strategies of medical institutions, such as responding to medical fee revisions, maintaining facility standards and dispersing equipment investment burdens through economies of scale, and utilizing tax incentives by transitioning to specific medical corporations or social medical corporations.

M&A Medical Editorial Department’s Perspective

The current revision of the Ordinance on Medical Care Fees, particularly the changes related to the names of practicab le medical departments, goes beyond superficial name changes and is deeply intertwined with the business strategies, M&A, and business succession of medical institutions. For example, in conjunction with national policy objectives such as regional medical care planning and the correction of physician maldistribution, the practicab le of certain medical departments may be encouraged or restricted. This could make it easier to practicab le “specialties lacking in the region,” while imposing restrictions on the practicab le of “over-supplied departments.” This means that for M&A, when an acquiring party aims for “strengthening regional presence” or “expanding services in specific fields,” the “practicab le departments” of the target medical institution will become a crucial factor in generating post-acquisition synergies and realizing business plans. Furthermore, the aspect of maintaining facility standards and dispersing equipment investment burdens through group affiliation suggests that M&A-based business succession is a realistic option for business continuity for small and medium-sized hospitals and clinics that are finding it increasingly difficult to maintain operations independently.

Points Highlighted by This News

• Potential for flexibility and consolidation of department names, linked with regional medical care plans.
• The business strategies of acquiring parties in M&A and the practicab le departments of target medical institutions will be emphasized more.
• Maintaining facility standards and dispersing equipment investment burdens through group affiliation will promote business succession for small and medium-sized hospitals and clinics.
• Tax schemes aimed at transitioning to specific medical corporations or social medical corporations will emerge as succession options.

Practical Questions Arising from This News

• What specific impact will this revision have on the names of departments our clinic can practicab le?
• In the future, when considering M&A with a view to regional cooperation or group affiliation, how will changes in practicab le department names be advantageous?
• What is a concrete scheme to maximize tax benefits in M&A involving a transition to specific medical corporations, etc.?

If You Feel “Should I Consult Too?”

Medical institution managers who cannot concretely envision how changes in practicab le department names will affect their future business strategies, M&A, or business succession should consult with an expert. This is a good opportunity to consider the optimal options (e.g., group affiliation, change of corporate status) in light of regional medical care planning and medical fee revision trends, and in comparison with your institution’s strengths and future vision. Early strategic planning leads to smooth business succession and sustainable management.

M&A Medical (CentralMedience Inc.) supports the business succession of medical corporations, hospitals, and clinics with a complete success fee system as a M&A support institution certified by the Small and Medium Enterprise Agency. Consultations are accepted with strict confidentiality. Free consultation here