What’s behind Japan’s healthcare fee hike
Japan is raising medical service fees under its public health insurance system as part of a broader effort to manage rising costs, support healthcare workers and adapt to the needs of a rapidly aging population.
An advisory panel to the health minister has recommended higher charges for hospital visits and inpatient care. The revisions are part of Japan’s biennial medical fee review, a key policy mechanism that determines how much hospitals and clinics can charge for treatments and services.
Under the proposal, consultation fees for patients will rise modestly, including a new inflation-related surcharge. Basic hospitalization fees will also increase, alongside higher out-of-pocket costs for hospital meals and utilities for long-term patients.
The changes will be introduced in stages beginning this year.
One major goal of the fee increase is to help medical institutions cope with inflation. Rising energy, food and equipment costs have squeezed hospital finances, particularly smaller facilities in rural areas.
Another priority is boosting wages for healthcare workers, as existing surcharges that allow hospitals to collect additional fees if they raise nurses’ pay will be expanded, and institutions that increase salaries for younger doctors will also become eligible.
The overall revision will increase medical service fees by an average of 3.09% over two years, while official drug prices will be cut by 0.87%.
By adjusting service and pharmaceutical costs separately, the government aims to balance financial sustainability with patient access.
Old population
The reform also reflects structural pressures from Japan’s demographics. With one of the world’s oldest populations, demand for chronic care, long-term hospitalization and complex treatments continues to grow. Policymakers are using fee incentives to guide the system’s direction without sharply increasing total spending.
To improve quality and efficiency, the review promotes telemedicine and digital tools, including support for artificial intelligence, voice recognition and online consultations. Hospitals performing advanced procedures such as robot-assisted surgeries will also see fee adjustments.
At the same time, authorities are tightening rules around certain practices. Facilities that fail to reduce the use of physical restraints may face lower payments, while new fees will encourage hospitals to accept emergency patients from depopulated regions.
This story is written and edited by the Global South World team, you can contact us here.
