How hospitals in Japan procure medical resources: report

Public hospitals focus on quality care while private hospitals focus on efficiency.

A report from L.E.K. Consulting showed how public and private hospitals differ in purchase decisions, with public hospitals focusing on products that will enhance the quality of care and patient satisfaction whilst private hospitals focus on increasing efficiency and maximising resources.

The report also indicated that more hospitals expect restrictions on sales representatives’ access to become more significant going forward. 

Most Japanese hospitals contract with at least one group purchasing organisation or GPO. (Private institutions are more likely to have contracts with multiple GPOs.)

"The most common features of hospital GPO contracts are a preferred supplier list and aggregation of purchases with other members to reach significant discounts," read the report.

The report said hospitals in the market continue to restrict the frequency of MR despite easing of border restrictions. This is due to hospitals preferring a shift to interacting with MRs via an online platform to accommodate the busy
schedules of doctors.

The increase in persistent MRs, causes a disturbance in hospital affairs by lining up in front of the examination rooms, disturbing patients, etc.