• Challenges from ageing populations and covid-19 are puttingpressure on Japan's health system
• Japan's health system falls behind its peers in terms oflong-term strategic perspective
• Price review and setting mechanism introduces unintendedinefficiencies in the health system and act as a brake on structural reform

TOKYO, JAPAN - MediaOutReach - 23 September 2020 - Japan's healthcare system has kept the country remarkably healthywith relatively minor changes for nearly six decades. The system providesuniversal care, extensive coverage and the most innovative treatments at a costthat is accessible to all. Yet the scope of coverage in the Japanese systemobscures the extent to which policymakers have put off making necessary butdifficult choices. In particular, the lack of regulation of demand for healthservices, the pressures of an ageing population and the underdeveloped systemfor determining cost-benefit for health investments could paralyse Japan'shealthcare system as the cost of providing health services increase. Theeconomic consequences of this would inevitably reverberate beyond the healthsystem itself.

Sustainable health systems not only haveappropriate resources to effectively function but are also capable of keepingup with developments and overcoming hurdles. Health systems must be able toaddress challenges and demonstrate the political will required to explore andimplement innovative designs for health services. For Japan, evolvingpopulation demographics and financial pressures represent two of the biggesthurdles for sustainability.

Health system sustainability in Japanis a report by The Economist Intelligence Unit, sponsored by Pfizer. Itexamines the challenges and opportunities that Japan's healthcare system isfacing and the sustainability of its current system compared with those ofother developed industrial countries. The research uses a scorecard to compareJapan's performance against those of five other countries across a number of domains,including disease prevention, integrated health models, the medical workforceand long-term care.

The research points to signs thatsignificant fixes to Japan's healthcare system may be necessary for Japan'shealth system to maintain long-term stability. Although Japan compares well inmany respects to the more expensive and fragmented system in the US, it lagsbehind the UK, France or South Korea, in three of the five principal scoringdomains Japan received its highest scores in the domains covering disease prevention and healthinfrastructure, and accountabilityand patient-centredness, and lowest in long-termstrategic perspective and provision of integratedcare models. Key issues that Japan's health system must overcome tomaintain long-term stability include changing incentives for healthcareutilization where currently prices are kept low but there is no limit ondemand; an overhaul of time-consuming biannual price reviews; and better use ofcost-saving generic and biosimilar drugs.

Jesse Quigley Jones, editor of the report,said, "Japan's health system is justly praised for its high-quality andgenerous coverage, however it's long-term sustainability is increasingly underquestion. The covid-19 pandemic has highlighted vulnerabilities of the systemwith experts warning of the collapse of the emergency medicine system, andpotential knock-on effects for the broader health system and even overalleconomy. Our research has highlighted some positive steps towards reform and anemerging long-term vision, but further political commitment is needed to makeevidence-based decisions and ensure Japan's health system is sustainable forgenerations to come."

About the research

Health system sustainability in Japanis a report by The Economist Intelligence Unit, sponsored by Pfizer. Itexamines the challenges and opportunities that Japan's healthcare system isfacing and the sustainability of its current system compared with those ofother developed industrial countries. The research uses a scorecard to compareJapan's performance against those of five other countries  across a number of domains, includingfinancing, cost-benefit analysis, workforce issues, medical research andlong-term care.

About The Economist Intelligence Unit

The EconomistIntelligence Unit is the world leader in global business intelligence. It isthe business-to-business arm of The Economist Group, which publishes TheEconomist newspaper. The Economist Intelligence Unit helps executives makebetter decisions by providing timely, reliable and impartial analysis onworldwide market trends and business strategies.

More informationcan be found at www.eiu.com or 

About Pfizer

At Pfizer, we apply science and ourglobal resources to bring therapies to people that extend and significantlyimprove their lives. We strive to set the standard for quality, safety andvalue in the discovery, development and manufacture of health care products,including innovative medicines and vaccines. Every day, Pfizer colleagues workacross developed and emerging markets to advance wellness, prevention,treatments and cures that challenge the most feared diseases of our time.Consistent with our responsibility as one of the world's premier innovativebiopharmaceutical companies, we collaborate with health care providers,governments and local communities to support and expand access to reliable,affordable health care around the world. For more than 170 years, we haveworked to make a difference for all who rely on us. We routinely postinformation that may be important to investors on our website at www.pfizer.com. In addition, to learnmore, please visit us on www.pfizer.com（global）and www.pfizer.co.jp (Japan)