Miharu Town of Fukushima Prefecture took over a prefectural hospital which was abolished due to the administrative and financial reform of the prefectural government. The hospital was restarted from April 2007 as the Miura Town Hospital. Miharu Town, whose major policy objective is the pursuit of people' s health, put the new municipal hospital as the center of community health and welfare activities and realized the coordinated works of all the health, medical and welfare personnel in town centered on the hospital and prevented the collapse of community medical care which could have happened with the abolition of the prefectural hospital. By analyzing the reformation process of the public hospital, the author explores how a public hospital could become financially sustainable and become an effective figure in community health and welfare..
