Financial conditions worsen at Japan hospitals in FY 2016

November 8, 2017

TOKYO- Financial conditions at Japanese hospitals worsened in fiscal 2016, which ended in March, due to rising labor costs, including for doctors, a health ministry survey showed Wednesday.

The ratio of profit or loss to revenue per institution came to minus 4.2 percent in the year, meaning that the surveyed hospitals were in the red on average. The figure was 0.5 percentage point worse than fiscal 2015 and the third worst since the survey started.

The survey results were submitted to the Central Social Insurance Medical Council, which advises the health minister.

The ministry conducts the survey to collect basic data used for a biennial revision of medical fees paid to hospitals and clinics under health insurance programs. In the latest survey, 1,450 hospitals and 1,744 clinics across the country gave valid responses.

Given the tough outcome, the Japan Medical Association and other medical organizations are expected to increase pressure for a hike in medical fees in the fiscal 2018 revision.

Among the surveyed hospitals, private institutions managed to secure profits, with the average ratio coming to plus 0.1 percent. On the other hand, the ratios for national and other public hospitals went deeper into negative territory, according to the survey.

Meanwhile, the ratio for clinics stood at plus 13.8 percent, almost unchanged from fiscal 2015.

The average fiscal 2016 salary fell 0.6 percent from the previous year to 14,562,552 yen for doctors employed at national hospitals. But the average salary increased 0.4 percent to 15,312,022 yen at other public hospitals and 0.2 percent to 15,166,986 yen at private hospitals.

Doctors running their own clinics earned 27,943,901 yen on average, down 0.6 percent. Jiji Press