Until 2022, the adoption of digital health solutions, including Electronic Medical Records (EMR), had been sluggish in Japanese hospitals, potentially due to high costs and limited digital literacy, particularly among older medical professionals. However, a shift is anticipated in the coming years as hospitals are expected to embrace these technologies with increased budgets and a growing demand among staff.
In a recent survey conducted by global management consultant L.E.K. Consulting, 50 hospital directors from both public and private hospitals across Japan participated. The survey was part of L.E.K.’s annual Asia-Pacific-wide examination of hospital executives to gain insights into their strategic priorities and challenges.
Key Findings:
- Strategic Priorities: Hospitals in Japan, in the next three years, are prioritizing preparations for future pandemics, enhancing staff safety, investing in new IT infrastructure, and providing clinicians with access to innovative medical technologies and treatments.
- Technology Uptake: A comparison with a 2019 study by Japan’s Ministry of Health, Labour, and Welfare revealed a historically low adoption of digital technologies in hospitals. Digital tools for remote consultation and teleradiology were the most embraced technologies during that period.
- Institutional Variances: Private hospitals in Japan have shown a more significant inclination towards implementing digital health solutions, especially for initial consultations and patient administration, compared to public hospitals. Private institutions have readily embraced emerging technologies like generative AI to enhance diagnosis decision-making.
- Usage Trends: Public hospitals predominantly use digital solutions for recording patient information, while private hospitals leverage them to disseminate personalized information to patients.
- Perceived Value: Private hospitals appreciate digital health for its role in transitioning to value-based care, while public hospitals acknowledge its contribution to enhancing the quality of care delivery, such as reducing medical errors and improving staff efficiency.
- Challenges: Despite the growing adoption of digital health, concerns persist regarding patient privacy due to increased instances of data leaks. Additionally, there is apprehension about the perceived rise in administrative burdens and a shortage of talent proficient in handling new technologies.
Broader Trends:
- EMR Adoption: As of 2021, Japan trailed in EMR adoption in primary care at 42%, significantly below the 93% average among countries in the Organisation for Economic Co-operation and Development (OECD).
- Government Initiatives: Since 2020, the government has been advocating for the standardization of EMR through funding initiatives for small and medium medical institutions. This aligns with the priorities of the Headquarters for Medical Digital Transformation, established in June of the previous year.
- Financial Outlook: Both public and private hospitals in Japan are optimistic about their financial outlooks in the near term. According to the L.E.K. survey, nearly six in ten public hospital directors anticipate a budget surplus over the next three years, while 88% of private hospital counterparts foresee high-profit margins.
