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Japan Press Service Co., Ltd. is the only news agency providing information of progressive, democratic movements in Japan

Mixed medical services and business entry into hospitals are U.S. demands

Japan has been under strong pressure from the United States to expand its market for medical services.

In the "Japan-U.S. Investment Initiative Report 2006" published on June 29, the U.S. government showed special interest in the medical services as well as M&A (mergers and acquisitions), education, and labor-related legislation in Japan.

Concerning the Japanese medical reforms, the U.S. government specifically urged the Japanese government to permit the entry of joint stock companies into hospital operations and the expansion of "mixed medical services" that include both treatments covered by public health insurance and treatments without the insurance coverages.

The Japanese government has so far barred for-profit enterprises from running hospitals and clinics on the grounds that their entry would result in a sharp increase in medical costs and a closing of hospital in non-profitable communities.

However, under Prime Minister Koizumi Jun'ichiro's "structural reform" policy, the Japanese government designated "special deregulation zones" and allows for-profit corporations to run hospitals in such zones.

Yet the U.S. government expressed its dissatisfaction with this measure by complaining that the approval of such special zones is too limited, demanding that Japan ease the requirements for establishing these zones.

"Mixed medical services" had also been basically banned in Japan, but the adversely revised medical system law enacted in the last Diet session increased the medical care in which such "mixed medical services" is applicable.

The U.S. government seeks a complete removal of restrictions on "mixed medical services," emphasizing, "Such services could reduce medical expenses, promote efficiency and mitigate financial pressure on the medical insurance system."

The Japanese government is apparently willing to make efforts to meet these U.S. demands.
- Akahata, July 9, 2006