Healthcare

March 2003

A high-ranking official of the federation of Japanese drug makers' associations criticized the government's idea of removing OTC-quasi prescription drugs from pharmaceutical benefits covered by the National Healthcare Insurance (NHI). The Ministry of Health, Labour and Welfare (MHLW) has suggested the plan to cut medical expenditure. (Japan Chemical Week, March 27, 2003)

Japan's first hospital-rating agency will be launched in mid-March. A university and three financial institutions will launch the nation's first rating agency for hospitals that will evaluate financial stability and the quality of treatment. Tochigi-based International University of Health and Welfare, Tokyo Tomin Bank, U.S. brokerage Lehman Brothers Inc. and Nissay Dowa General Insurance Co. plan to jointly launch the institution, which will be capitalized at 100 million　yen. In April, the entity will start assessing private hospitals that request such an evaluation. First, researchers will interview the hospitals' doctors and management teams over a four-week period. Then, a team of financial experts and the university's professors who are familiar with hospital management will rate the hospitals based on their financial stability, future potential and quality of care. The five-level ratings will be made public only on the hospitals' requests. The ratings are intended to be helpful for hospitals to raise funds and for patients to select hospitals. Starting in fiscal 2004, 42 national-university-affiliated hospitals also plan to join forces to assess their treatments and other services. That's because state-funded universities will be revamped into independent entities starting in April 2004, which will force such institutions to improve their finances. By rating their services, doctors and other factors, the university-affiliated hospitals aim to rationalize their business. The 42 hospitals plan to launch a steering committee in April and then compile common assessment guidelines. A public third-party organization has been rating hospitals since 1997, but its assessments have been centered on facilities and treatment capacity, but not the quality of care. (March 3, the Nihon Keizai Shimbun)