The Market value of Healthcare Providers Sector in Japan attained a value of US$ 455.05 Billions in 2021
The Sector recorded a historical growth (CAGR) of 1.86% between 2018 to 2021, and is expected to grow by ...
GlobalData projects the Sector to grow at a CAGR of ...
Japan healthcare providers market analysis
The Japanese healthcare providers sector saw growth remain moderate overall in the historic period. Growth in the forecast period is expected to decelerate to a weak level. The healthcare providers sector has been under pressure as a result of the COVID-19 pandemic but in comparison to other countries of similar development level it has fared well. Hong Kong has an effective efficient epidemic control policy and the public often wore masks prior to the outbreak which helped curb transmission. The country saw a minor spike in July then a major spike at the end of December and start of 2021.
A high pension deficit resulting from the aging population will work to constrain growth in the short-term. As Japan finds itself with a larger elderly population whose healthcare needs are greater, it is also suffering from a shortage of younger eligible tax-payers to help fund the health service. The retirement age is set to increase to combat this issue.
Growth is expected to decelerate in the forecast period but the lasting effects of the pandemic will be felt. The economy declined in 2020, which could reduce funding for the health system, although there is also likely to be additional injections of cash to make up for this. The sector will also be crucial in the vaccine rollout which so far has been delayed, only starting in mid-February.
The healthcare providers sector is valued as total expenditure on healthcare in each country. This includes final consumption spending on healthcare goods and services. Goods and services in this sector include inpatient, outpatient, long-term medical care, medical goods including pharmaceuticals and supplies, and collective services and capital formation such as administration requirements and development costs. Public spending (e.g. by national and local governments and social security schemes) and private spending (e.g. payments made by private-sector health insurers and individual out-of-pocket expenditures) are both included.
Key players
Public providers, as a consequence of Japan’s well-developed system of universal coverage, the market is not conducive to intense competition between providers. However, the centralized pricing system for medical goods and reimbursement does create some level of competition between public providers on quality of care, which attracts more patients and thus secures greater levels of reimbursement.
Private providers such as Itabashi Medical System, Toda Medical Group and Tokushukai are mainly hospital operators with large networks, which entail economies of scale, thus improved efficiency against smaller players. This is evident from the fact that consultation fees in large hospitals are lower than small hospital facilities or outpatient clinics.
Nichii Gakkan is the leading provider of long-term healthcare in the country, particularly home nursing for elders, which is a lucrative market in Japan due to the ageing population. Additionally, the company also operates in healthcare management services such as medical claims and sale of medical records.
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