Hospitals show revenue drop on 2018

Profit margins for hospitals in Japan, excluding psychiatric institutions, decreased 2,7% in fiscal year 2018, reflecting rising costs due to the high rate of hiring doctors, a Ministry of Health survey showed Wednesday. market.

Still, reading for the year ending last March marked an improvement of 0,3 percentage points over the fiscal year of 2017, according to the Health Economic Survey. The profit margin represents gross profit divided by revenue.

The survey results were submitted to the Central Medical Council for Social Security, which advises the Minister of Health, on the same day. They will be used as basic data for an 2020 tax review of medical fees, including the prices of prescription drugs in health insurance programs.

The Japan Medical Association and other organizations are increasingly demanding an increase in fees paid to cover doctors' labor costs and other expenses.

The ministry is considering offsetting a possible rise in these rates by cutting drug prices to reduce the total amount paid to hospitals and clinics. He will hold talks with the Ministry of Finance for a deal later this year.

Ministry research showed that private hospitals posted a positive profit margin of 2,8% on average in fiscal year 2018. On the other hand, rates at national hospitals and other public hospitals were deeper in negative territory, recording less 2,3% and 13,2% profits, respectively.

Profit margins in clinics under 20 beds for inpatients, dental clinics and health insurance pharmacies were in positive territory, reaching 8,3%, 20,5% and 5,5%, respectively.

Source: Jiji Press

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