[MHLW] Base-Up Evaluation Fee Forms, Videos, and Tools Released – Notification Required for All Medical Institutions for Calculation from June Onward – PT-OT

News Highlights

The Ministry of Health, Labour and Welfare (MHLW) has released the forms, explanatory videos, and calculation support tools necessary for calculating the “Base-Up Evaluation Fee” from June 2024 onwards. To claim this evaluation fee, all medical institutions must submit the prescribed notification by June. This is expected to promote salary increases in medical institutions.

M&A Medical Editorial Department’s Perspective

The release of forms, videos, and tools for the Base-Up Evaluation Fee by the MHLW is more than just an announcement of administrative procedures. In particular, the requirement for all medical institutions to submit a notification for calculation from June onwards presents an urgent management challenge for those not yet compliant. This evaluation fee is directly linked to improving the treatment of healthcare professionals, and choosing not to calculate it could lead to a decline in competitiveness within regional healthcare. For example, if a neighboring competing hospital quickly prepares for calculation and raises its salary levels, it may become difficult to attract and retain excellent personnel. From an M&A perspective, the status of this evaluation fee calculation can be an important indicator when assessing the profitability and future prospects of a target medical institution. For medical institution managers considering business succession due to reasons such as lack of a successor, a strategy to maximize the utilization of this evaluation fee, enhance business value, and aim for succession under more favorable terms can be considered.

Points Highlighted by This News

• Notification from all medical institutions is required for calculating the Base-Up Evaluation Fee from June onwards, and failure to comply directly leads to a loss of revenue opportunities.
• The status of calculation and utilization of the evaluation fee affects the profitability, talent acquisition capabilities, and ultimately the business value of medical institutions.
• Medical institutions considering business succession, such as due to a lack of a successor, should strategically utilize this evaluation fee as a measure to enhance business value.
• The provision of calculation support tools by the MHLW, while aiming to simplify the calculation process, suggests an intention to encourage prompt action from non-compliant institutions.

Practical Questions Arising from This News

• By when and where should our clinic (hospital) submit the notification for this Base-Up Evaluation Fee?
• If we calculate the Base-Up Evaluation Fee, we want to simulate how much our revenue will increase and how it will affect personnel costs.
• For small medical institutions without dedicated administrative staff, what is the most efficient way to handle the calculation of the evaluation fee?

If You Feel “Should I Consult?”

Are preparations for calculating the Base-Up Evaluation Fee progressing at your institution (clinic)? The calculation of this evaluation fee is not just about increasing personnel costs; it is a crucial management decision that can impact the overall revenue structure and future business value of the medical institution. In particular, if you are considering future business succession or are facing a lack of a successor, maximizing the utilization of this evaluation fee to enhance your institution’s appeal is key to securing better succession terms. Please feel free to consult us if you have any questions regarding the calculation procedures or management strategies utilizing this evaluation fee.

M&A Medical (CentralMedience Co., Ltd.) supports the business succession of medical corporations, hospitals, and clinics on a complete success fee basis as an M&A support institution certified by the Small and Medium Enterprise Agency. Consultations are kept strictly confidential. Free consultation here