Consultation Cancellation Fees Only at Some Hospitals; Health Ministry Corrects Notice, Apologizes for Insufficient Dissemination (Kyodo News) – Yahoo! News

News Highlights

The Ministry of Health, Labor and Welfare (MHLW) has corrected its notice regarding consultation cancellation fees, which are implemented at some medical institutions, apologizing for insufficient dissemination to patients. Regarding cancellation fees, which were initially stated as being able to be set at the discretion of medical institutions, the MHLW has reiterated its stance that “charging patients is not permitted in principle.” This correction of the notice compels some medical institutions, which had been collecting cancellation fees without patient understanding, to reconsider their practices.

M&A Medical Editorial Department’s Perspective

This correction of the MHLW’s notice concerning consultation cancellation fees sheds light on the “patient trust relationship,” an extremely important element in M&A and business succession, within medical institution management. The background to the introduction of cancellation fees at some medical institutions is presumed to be management challenges such as lost opportunities due to no-shows and ensuring appointment times. However, if unilaterally introduced without sufficient explanation to patients, it can lead to guidance from the MHLW, as in this case, and ultimately result in the loss of patient trust. When considering M&A or third-party succession, the evaluation of these “soft aspects,” such as the relationship with patients and how accountability is fulfilled, is indispensable in determining the sustainability of the business. In particular, for medical institutions with no successor that continue their business through M&A, maintaining and expanding the existing patient base is key. However, friction that can arise with patients, such as the cancellation fee issue, can become a major obstacle to smooth business succession. It is likely that business owners who consider not only immediate profits but also the perspective of building long-term relationships with patients will increase the probability of successful business succession.

Points Raised by This News

• The introduction of cancellation fees at some medical institutions has highlighted the necessity of careful explanation and understanding promotion to patients.
• The MHLW’s correction of the notice has reaffirmed that even if medical institutions have discretionary items, consideration must be given to ensure patients are not disadvantaged.
• In M&A and business succession, the evaluation of intangible assets such as the trust relationship with patients influences the sustainability of management.
• Policies affecting patient relationships, such as cancellation fees, can pose a risk that hinders a smooth transition to a new system after business succession.

Practical Questions Arising from This News

• How should we respond to the introduction of cancellation fees, given this notice?
• If explanations to patients were insufficient, is there a possibility of being asked to refund past cancellation fee collections?
• We are considering M&A; how will issues related to patient relationships be evaluated by potential buyers?

If You Feel “Should I Consult Too?”

If your clinic has introduced or previously introduced consultation cancellation fees, it is important to accurately understand the content of this MHLW notice and reconfirm whether the responsibility to explain to patients has been sufficiently fulfilled. If there is a possibility of insufficient explanation or misunderstanding with patients, it may lead to a lower valuation by buyers or a risk of patient defection when considering business succession or M&A. To proceed with business succession smoothly, we recommend evaluating the current situation with experts to identify any risks of damaging the trust relationship with patients and taking necessary measures.

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