Innovating through Adversity

Apr 27

Three fundamental concepts for strengthening Japan’s medical system

Covid-19 has completely changed our way of life. It has also made us aware that we have been taking many things for granted, assuming that they were one way when, in reality, they were not.

Japan’s healthcare and health insurance systems are great examples. We believed them to be among the best in the world, and that we are enjoying long and healthy lives thanks to them. While it is true that we can enjoy a high quality of life, nutrition, and public health in Japan, the coronavirus pandemic has shown that there are areas of these systems that can be improved. Access to vaccines and medicines in Japan, for example, may not be among the best in the world.

Communication Matters

Through our discussions with patient groups, we have learned that many patients are still suffering from rare and difficult diseases for which a treatment is hard, or no treatment exists at all. Even a test or diagnosis can be challenging. We believed the situation in Japan was the same as in other countries, but we are now starting to think that this may not be the case. Perhaps the situation is not the same everywhere, and access to innovative healthcare in Japan is not on par with that in other leading countries.

As economic growth has remained stagnant for a long time, the financial burden on the national government to maintain the social security system has become a big problem that must be solved. We, as the whole nation, need to find a solution and promote innovation in the development of new medical treatments as soon as possible.

Three Fundamental Concepts

To achieve such a goal, the voices of patients should be heard by policymakers and the general public. It is important that patient-centric healthcare achieves the outcome of curing more diseases as a result of what is learned from those in need of, or receiving, treatment.

We believe in three fundamental concepts as a basis for the future of Japan’s social security system:

Maintain protection from financial risk as the function of the public insurance system, in keeping with the philosophy that large risks should be covered with assistance and small risks by the individual.
Divide the insurance (risk dispersion) and tax (redistribution) functions of the social security system and concentrate the use of public funds on those who are genuinely in need.
Share a vision of what Japan should achieve in the era of longevity, promoting innovation in health using information and communications technology, artificial intelligence, Big Data, and other technologies, stimulating national awareness of system-wide innovation.

The Institute for New Era Strategy (INES) is not only taking these ideas to the government but working hard to bring together the private and public sectors to catalyze discussion to promote healthcare innovation and new approaches to more sustainable financing of health and retirement in Japan.