Profit margin at Japanese general hospitals stood at minus 7.3%

The profit margin at general hospitals in Japan, excluding psychiatric institutions, stood at minus 7.3% on average in fiscal 2024, which ended in March, a health ministry survey showed Wednesday.
The figure improved by 0.2 percentage point from the previous year.

The profit margin at clinics run by medical corporations came to plus 4.8%, falling by 3.5 points.

The ministry reported the results of the Survey on Economic Conditions in Health Care to the Central Social Insurance Medical Council, which advises the health minister. The ministry received answers for the survey from 1,167 hospitals and 2,232 clinics across the country. The survey results will be used for the revision of medical service fees in fiscal 2026.

“Revenues declined due to a rise in costs at medical institutions from climbing prices and labor costs,” a ministry official said.

The profit margin came to minus 1.0% at medical corporations, minus 5.4% at national hospitals and minus 18.5% at public hospitals.

At general hospitals, the ordinary profit margin, which includes subsidies provided by the state and local governments, stood at minus 3.9%, worsening by 1.5 points.

The average annual income of directors and doctors at general hospitals came to some ¥25.87 million ($166,000) and around ¥14.84 million, respectively.

The annual income of directors at clinics operated by medical corporations was about ¥28.97 million on average, while that of doctors stood at around ¥10.98 million.

The Japan Medical Association and others have been calling for raising the main portion of medical fees, seeking a drastic increase to cope with rising costs and wage hikes.

On the other hand, the Finance Ministry has been urging a proper balance between lowering the health insurance premium burden on the working generation and ensuring necessary medical services. The Japan Times