Transformation of Hospital Managing Organizations into Medical-nursing Complexes

Abstract

This paper examines the characteristic of managing organizations that operate multiple hospitals or hospitals and nursing homes. In particular, it focuses on their market shares in terms of the total number of hospitals and beds they operate, the establishment of such medical-nursing complexes, etc. The number of hospitals in Japan has been decreasing continuously, reflecting the keen competition among hospitals and the government’s restructuring of the national health care system. In spite of this severe market climate, there has been a noteworthy growth in hospital chains and health and medical welfare complexes. Thus, it is obviously important to understand the characteristic features and operations of the various managing organizations that run hospitals.
For this paper, the author analyzed all of the 358 hospitals in Saitama Prefecture and found that they are governed by 294 managing organizations. Over 40% of the hospitals and over 60% of hospital beds are under the governance of medical-nursing complexes. From 1996 to 2006, these medical nursing complexes have increased their share in terms of total number of hospitals by 13% and the total number of beds by 11%. Furthermore, 29 new medical-nursing complexes were set up, and there were 6 mergers and acquisitions.
Based on the results of this research, the author summarizes his findings as follows:
(1) The medical-nursing complexes are the current market leaders in hospital services.
(2) The expansion of medical-nursing complexes will continue.
(3) The formation and expansion of medical-nursing complexes can be understood as a diversification of the medical business.