This TforG Healthcare Scan for Japan includes numerical and written analysis on the socioeconomic and macroeconomic context and outlook, the healthcare system, and the latest healthcare reforms. Moreover, an extensive chapter is dedicated to the markets for capital equipment, medical devices, disposables and pharmaceuticals. It also covers 1,000 surgical procedures, reported by the ICD9 coding system in 13 specialisms.
The TforG Healthcare Scan is accessible through a user friendly Business Intelligence tool. Licenses are valid for 1 year.
- Japan is the world’s third largest economy based on GDP, current prices. The economic growth of the past 5 years has averaged 0.62%, including a slight contraction in 2014. Growth will remain very low in the coming years, challenged by demographic factors, the sustainability of the high public debt, new international trade competitors and protectionist trade policies from the USA.
- The population numbers close to 128.5 m, and enjoys the highest life expectancy in the world.
- Japan has a notoriously high public debt ratio to GDP of nearly 250%.
- Exports and imports propel Japan’s economy forward, and the benefits of the strong external sector growth are trickling down to the advantage of the real economy, boosting industrial output and retail.
- The recent appreciation of the yen could present a drag on investments and net exports in the short term. However, the government is introducing stimulus packages; simultaneously international economies are forecasted to pick up (with positive impacts on trade for Japan), so despite the weak GDP growth forecasts, Japan’s economy has a stable outlook.
The Healthcare System
- Japan’s healthcare system is provided through universal insurance coverage, including services such as illness screenings, infectious disease control and prenatal care. On average, the patient pays 30% of these universal services, and the state the remainder.
- Hospitals in Japan are not allowed to be managed on a for-profit basis, and both hospitals and clinics are run by physicians.
- Japan has one of the highest counts of general hospitals when compared to Western nations. Japan has a total of 7,426 hospitals. The vast majority are private, accounting for close to 80% of all hospitals.
- HC utilization is relatively high in Japan compared to other developed nations, yet overall healthcare costs are comparatively low.
- The healthcare expenditure in Japan in 2015 was around €380 bn, equivalent to 10.2% of its nominal GDP. About 83.6% is funded publically, while the remaining 16.4% is coming from private sources, fore mostly OOP payments, constituting 85.4% of the private expenditure.
- Payment systems and rates are stringently controlled, whilst the delivery of services itself is given relative freedom and organizational autonomy.
- Health Care Reform Act (2015)
- Strategy of SAKIGAKE (2014-2015)
- Japan Revitalization Strategy (2014)
- Pharmaceutical and Medical Devices Law (PMDL, 2014)
- Social security reforms (2013-ongoing)
- Japan has the second largest medtech market in the world, valued around €36.9 bn. Its pharma market in 2015 was valued around €66 bn.
- The total capital equipment market in Japan in 2015 was valued around €4.7 bn. The diagnostic imaging market was valued around €4 bn, and expected to grow steadily by close to 4% CAGR in the next 5 years.
- The medical device market (excluding capital equipment and disposables) in Japan in 2016 is valued around €24 bn, with a year on year growth rate of around 2.7% in the next 5 years.
- Increased cost-containment policies being mandated by the central government are driving down reimbursement values and the prices of medtech and pharmaceutical products.
- Import volumes exceed export volumes, and this gap has grown slightly bigger over the last 8 years. High favoritism for innovative products.
- The registration and marketing process is considered rather complex and lengthy in Japan and it is highly advised to carefully select suitable business partners to support one’s registration process and networking activities locally.
- The demands of the ageing Japanese population, who are well accustomed to a high level and availability of healthcare, will boost the demand of all products related to geriatric care, chronic ailments and elderly conditions for medtech and pharma sectors in the short to long-term.
Includes tables centralizing all relevant data on socio-demographics, macroeconomics and national Healthcare.
National Care Provision data:
Provides an overview of the Healthcare demographics: Nation Care provision data, Intensive Care units, Operating rooms, Emergency Rooms, Hospital services, Healthcare professionals.
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