Medical fees paid to hospitals and clinics in Japan in fiscal 2023 grew 2.9% from the previous year to a record high of about ¥47.3 trillion ($325 billion), preliminary health ministry data showed Tuesday.

The third straight annual rise reflected the country's aging population and the increased use of advanced medical equipment and technologies.

The data covered payments from health insurance programs, public money used and medical expenses shouldered by patients themselves, but not costs fully borne by patients and those covered by the worker compensation system. The reported amount made up roughly 98% of all medical expenses in the country.

Medical fees paid for hospitalization climbed 3.1% to ¥18.7 trillion, and those for other forms of treatment, such as for outpatients and house calls, went up 1.0% to ¥16.4 trillion. Costs to dispense drugs increased 5.4% to ¥8.3 trillion, and those to treat dental patients expanded 1.9% to ¥3.3 trillion.

In the fiscal year to last March, medical costs related to COVID-19 nearly halved to some ¥440 billion as the virus was downgraded to a lower-risk category under the infectious disease law in May 2023.

Medical costs per head stood at about ¥380,000, up by ¥12,000. Per capita costs came to ¥965,000 for those age 75 or over and ¥252,000 for younger people.