Overview

• Japan’s internal affairs ministry reported a ¥395.2 billion operating shortfall for municipal hospital operations in FY2024, with 83% of 844 hospitals running deficits.
• The aggregate deficit was nearly double FY2023’s ¥209.9 billion, marking a second consecutive year of worsening finances.
• Operating pressure intensified as inpatient volumes rose but personnel costs increased 5.0% and materials such as pharmaceuticals climbed 3.1% year over year.
• The health ministry began emergency measures in April, including roughly ¥4.1 million per bed for hospitals that reduce capacity in line with changing demand.
• Hospital organizations and physicians cite a 0.88% uplift to the core portion of last year’s fee schedule as insufficient, warning that staffing shortages are deepening.