Acute care hospital reform in Japan: Outcomes in quality and market competition

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<jats:sec> <jats:title>Acute care hospital reform in Japan: Outcomes in quality and market competition</jats:title> <jats:p>This paper describes why the fee system for acute care hospital reform in Japan is beginning to show results. It has been 20 years since the Japanese government introduced a comprehensive fee system (the Diagnosis Procedure Combination/Per- Diem Payment System [DPC/PDPS] ) for acute care hospital reform. While the DPC/PDPS was developed to provide visibility into the management and improvement in the management of acute care hospitals, the government's expected policy outcome was a reduction in inpatient care costs. To date, this goal has not been achieved, partly because the design of the DPC/PDPS is imperfect, and the population is aging, and longevity is increasing. However, other outcomes of introducing the DPC/PDPS are beginning to materialize; the first is an improved quality of medical care through an early discharge and segregation of medical functions, and the other is greater competition in the regional healthcare market.</jats:p> </jats:sec>

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