(ANN/THE JAPAN NEWS) – More than 60 per cent of hospitals in Japan have been operating in the red due to the rising cost of living and higher wages, according to organisations such as the Japan Hospital Association.
Six organizations announced at a press conference Wednesday the results of an emergency survey, which found that hospitals are experiencing greater financial difficulties after medical service fees were revised in fiscal 2024.
They asserted that the escalating living expenses and rising wages have caused the cost of medical services, including treatments, to exceed hospitals’ revenue, leading to a deficit in their current profit.
The survey was conducted from January to February among 5,901 hospitals belonging to the six organisations, with 1,816 facilities, or 30.8 per cent, responding. Balance sheets from June to November last year, after the revision, were compared with the same period in 2023.
The results showed 61.2 per cent of hospitals reporting a deficit in current profit, up by 10.4 percentage points from 50.8 per cent in 2023.
While revenue from medical services, such as from inpatient and outpatient treatments, increased by 1.9 per cent, personnel costs rose 2.7 per cent and expenses for medical supplies and utilities grew by 2.4 per cent, meaning costs outpaced growth in revenue.
As hospitals’ financial situations worsen year after year, the six organisations along with the Japan Medical Association highlighted the pressing nature of the issue in a joint statement on Wednesday, saying, “If things continue as they are, medical institutions will one day suddenly disappear from the community.”
“The situation is extremely severe and urgent,” said Japan Medical Association President Kichiro Matsumoto. “We need a system for medical service fees that adequately responds to rising prices and wages.”
