Healthcare

November 2007

Health Ministry To Cut Govt-Set Drug Prices 1% In FY08
The government is expected to reduce drug prices charged by medical institutions by about 1% in fiscal 2008, with the Health Ministry reporting to its advisory panel Wednesday that its September survey found wholesale prices paid by hospitals to be 6.5% lower than the government-mandated levels. The cut would save the government about 80 billion yen in medical costs. Meanwhile, the Central Social Insurance Medical Council is expected Wednesday to compile a report for Health Minister Yoichi Masuzoe, in which it will recommend that the government not cut fees paid to medical institutions as compensation for treatment. The report is to point out that wages and prices increased 0.7% in the two years since the medical fees were last revised in fiscal 2006. Citing these increases, the panel will urge the government to give special consideration to hospital doctors, who often work under tougher conditions than private practitioners. The body is also expected to call for fair treatment of doctors in such fields as obstetric, pediatric and emergency care. (The Nihon Keizai Shimbun, )