The Central Social Insurance Medical Council has decided on the details of the medical-fee hike for fiscal 2008. The council was expected to distribute the increase in a manner that would slow the drain of doctors from hospitals due to hard work. Although the council has made efforts in that direction, they are insufficient.

The council decision follows a December decision by the government and the ruling parties to raise medical fees paid to medical institutions for physician services by 0.38 percent. Some ¥150 billion will be mainly used to boost fees for services performed by obstetricians, pediatricians and emergency-care doctors at hospitals. A shortage of such doctors is placing a serious strain on the nation's medical services. Slightly more than ¥100 billion will come from the fee hike and slightly more than ¥40 billion through the transfer of miscellaneous revenues from medical clinics.

But the council failed to implement an important means of beefing up financial resources for hospital doctors — an increase in fees for followup visits at hospitals with fewer than 200 beds (¥570 each) and a reduction of such fees at clinics with fewer than 20 beds (¥710 each). Facing opposition from the Japan Medical Association, which primarily represents the interests of self-employed physicians, the council decided only to raise the fees for such hospitals by ¥30 to ¥600.