The Growth of the Japanese Healthcare System


The Japanese healthcare system has been focused on keeping costs low, however, as demand for services continues to grow, overall health expenditures based on a percentage of GDP will increase to levels already seen by other OECD countries. Medical advancements, technologies, higher frequency of treatment, and overall care for the aging will substantiate for most of these higher costs.


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What is Needed


Medical Technologies

  • Healthcare Information Systems (HIS)/Information Communications Technologies (ICT).
  • Wireless and telehealth focused solutions.
  • Diagnostic equipment and devices.
  • Other new technologies and products in use or in development.

Aging/Elderly Focused

  • Preventive care products and solutions.
  • Treatments for specific chronic disease, especially cancer.
  • Products for easy living, including health and wellness-related.

Corporate

  • Introduction of specific generic drugs to market and creation of respected Japan-based partnerships.
  • Vertical integration - multi-product/service providers.
  • Partnerships to provide the Japanese elderly population with better lifestyles and choice.

 

Japan Healthcare Market Insights


Disease-related

  • Malignant neoplasms, heart disease and cerebrovascular diseases are the main causes of death and will increase in prevalence as Japan’s population ages.
  • Cancer rates (malignant neoplasms) among males are higher than those in the US (OECD).
  • 40% of males (15+ years old) smoke regularly – the highest percentage among OECD countries.

 

Aging Population

  • Japan has the highest aging population in the world; 30% are 60+ years, 21% considered elderly (UN estimates).
  • Obesity and diabetes rates are rising due to fast food diets; diabetes to increase significantly among the aging population.
  • The government is pushing for greater number of generic drug prescriptions to lower healthcare expenditures directly related to increase consumption of medications by the Japanese elderly.
  • Home care activities will increase to take care of the elderly in a more cost efficient way, including direct visits by physicians.
  • Medical technologies, mobile communications and telehealth spending will increase dramatically.
  • Japan’s aging/elderly population has one the highest savings rates in the world ideal for additional spending on healthcare and well-being products and services.


Japan’s Super Aging Population leading to substantial budget increases

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Source: Ministry of Finance