Each year, L.E.K. Consulting surveys hundreds of hospital leaders across the Asia-Pacific (APAC) region to uncover evolving priorities and purchasing behaviors. Our goal is to equip healthcare companies with actionable insights to better engage stakeholders and refine their product and service strategies.
Below are key findings from this year’s survey focused on hospitals in Japan.
Financial outlook – Hospitals are balancing budget challenges with cautious optimism in the future on profitability
More than 60% of Japanese hospitals continue to operate at a deficit, a challenge that was exacerbated during the COVID-19 pandemic — particularly among acute care institutions.
Smaller hospitals (20–299 beds) experience heavier burdens from clinical staff costs, while larger hospitals (300+ beds) are more likely to increase investments, particularly in capital expenditures and medical supplies.
Despite current financial pressures, optimism exists. Approximately 70% of large hospitals anticipate EBITDA margins exceeding 10% within the next three years.
Strategic priorities – Hospitals are looking for efficiency, standardization, and workforce resilience
Across the board, Japanese hospitals are prioritizing cost control, care standardization and staff retention.
Larger hospitals are accelerating digital health investments, and smaller hospitals are concentrating on reducing medical supply costs.
Following the implementation of 2024 physician overtime regulations, workstyle reform is progressing — especially in larger hospitals. However, challenges remain: Larger hospitals cite a lack of solutions and implementation know-how, and smaller hospitals struggle primarily with insufficient funding.
Despite a strong interest in digital solutions for improving care quality and operational efficiency, hospitals face two major hurdles: 1) talent shortages in IT and digital health, and 2) limited infrastructure and technical capacity.
Equipment purchasing and maintenance – Hospitals are looking to standardize procurement to manage costs
Cost remains the top purchasing criterion for hospitals, followed closely by product innovation. As equipment value increases, decision-making influence shifts toward CEOs, directors, and CFOs.
To manage costs, hospitals are increasingly standardizing procurement practices — particularly in consumables — by narrowing the range of items and suppliers.
Hospitals are more likely to outsource equipment maintenance as asset value increases. Domestic medtech companies are widely regarded as the most reliable providers of service and support.
To learn more about the priorities of hospitals in Japan for 2025, please be sure to download our analysis.
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