Japan's general hospitals averaged a minus 7.3% profit margin in fiscal 2024, improving by 0.2 percentage points from the previous year. The health ministry's survey revealed this figure on Wednesday. Rising costs at medical institutions are squeezing revenues.
The health ministry reported the results of its Survey on Economic Conditions in Health Care to the Central Social Insurance Medical Council on Wednesday. The survey covered general hospitals excluding psychiatric institutions and gathered responses from 1,167 hospitals and 2,232 clinics nationwide. These findings will inform revisions to medical service fees in fiscal 2026.
The average profit margin for general hospitals stood at minus 7.3% in fiscal 2024, which ended in March, marking a 0.2 percentage point improvement from the prior year. In contrast, profit margins at clinics operated by medical corporations fell to plus 4.8%, a drop of 3.5 points. Overall, medical corporations recorded minus 1.0%, national hospitals minus 5.4%, and public hospitals minus 18.5%. Including state and local subsidies, the ordinary profit margin for general hospitals worsened to minus 3.9%, down 1.5 points.
A ministry official stated, “Revenues declined due to a rise in costs at medical institutions from climbing prices and labor costs.” Average annual incomes at general hospitals were about ¥25.87 million ($166,000) for directors and presidents, and ¥14.84 million for doctors. At medical corporation clinics, directors averaged ¥28.97 million, while doctors earned around ¥10.98 million.
The Japan Medical Association and others are advocating for substantial increases in core medical fees to address escalating costs and wage hikes. Meanwhile, the Finance Ministry emphasizes balancing reductions in health insurance premiums for the working population with the provision of essential medical services.