Medical Care Act

A prefectural governor, where a social medical corporation falls under any of the following items, may rescind the social medical corporation's authorization, or order all or a part of the profit-making activities to be suspended for a period that the prefectural governor prescribes:

when the requirements listed in each item of Article 42-2, paragraph (1) are no longer being met;

when operations other than those stipulated in the articles of incorporation or act of endowment have been carried out;

when profits from the profit-making activities are not set aside for the administration of a hospital, clinic, long-term care health facility, or integrated facility for medical and long-term care established by the relevant social medical corporation;

when the continuation of profit-making activities is found to be a hindrance to the operation of a hospital, clinic, long-term care health facility, or integrated facility for medical and long-term care established by a social medical corporation (including a hospital, etc. managed by a designated administrator);

when authorization as set forth in Article 42-2, paragraph (1) has been received by unlawful means; or

when the social medical corporation has violated this Act, any order based on this Act, or any disposition based on these.

In rescinding authorization pursuant to the provisions of the preceding paragraph, the prefectural governor must hear the opinions of the Prefectural Council on Medical Service Facilities in advance.

A prefectural governor, when a medical corporation fails to establish or re-open a hospital, clinic, long-term care health facility, or integrated facility for medical and long-term care without justifiable grounds, within one year of the establishment of the relevant medical corporation or within one year of the suspension or abolition of all of its hospitals, clinics, long-term care health facilities, and integrated facilities for medical and long-term care, may rescind its authorization for establishment.

A prefectural governor, where a medical corporation has violated the provisions of laws and regulations or an order by the prefectural governor based on the provisions of laws and regulations, may rescind its authorization for establishment, provided that the purpose of supervision cannot be achieved by any other means.

In rescinding authorization for establishment pursuant to the provisions of the preceding paragraph, the prefectural governor must hear the opinions of the Prefectural Council on Medical Service Facilities in advance.

When the Minister of Health, Labour and Welfare finds there to be a risk of significant harm to the public interest due to a failure to undertake disposition pursuant to the provisions of Article 64, paragraphs (1) and (2), Article 64-2, paragraph (1), Article 65, or paragraph (1) of the preceding Article, the minister may instruct the prefectural governor to undertake disposition pursuant to the relevant provisions.

The prefectural governor concerned (meaning the prefectural governor of the location of a hospital, clinic, long-term care health facility or integrated facility for medical and long-term care established by a medical corporation, who is not the prefectural governor of the location of the principal office of the relevant medical corporation) may, when the prefectural governor finds it necessary, express the opinion to the prefectural governor of the location of the principal office of the relevant medical corporation that appropriate measures should be taken against the relevant medical corporation.

In issuing a disposition refusing authorization pursuant to the provisions of Article 44, paragraph (1), Article 55, paragraph (6), Article 58-2, paragraph (4) (including the cases where it is applied mutatis mutandis by replacing the terms pursuant to Article 59-2), or Article 60-3, paragraph (4) (including the cases where it is applied mutatis mutandis by replacing the terms pursuant to Article 61-3) or recommending the dismissal of an officer pursuant to the provisions of Article 64, paragraph (2), the prefectural governor is to grant the person named in the relevant disposition or the party under the relevant recommendation the opportunity to give an explanation to a designated official or to another party. In this case, the prefectural governor must give written notice in advance to the person named in the relevant ruling or the party under the relevant recommendation of the date and time and location of the explanation and the grounds for the relevant disposition or the relevant recommendation.

A person who receives a notice as set forth in the preceding paragraph may have a representative appear, and may submit their own supporting evidence.

A person who has given a hearing to an explanation pursuant to the provisions of paragraph (1) must create and retain a hearing record, prepare a written report, and state their opinion to the prefectural governor concerning whether the relevant disposition or recommendation is necessary.

The provisions set forth in Article 4, Article 158, and Article 164 of the Act on General Incorporated Associations and General Incorporated Foundations, and Article 662, Article 664, Article 868, paragraph (1), Article 871, Article 874 (limited to parts pertaining to item (i)), Article 875, and Article 876 of the Companies Act apply mutatis mutandis to medical corporations. In this case, the term "distribute its assets to its partners" in Article 664 of the Companies Act is replaced with "assign its assets to persons with vested interests in residual assets or to the national treasury", and the term "head office" in Article 868, paragraph (1) of the same Act is replaced with "principal office".

Beyond what is specifically provided for in this Chapter, particulars necessary for the supervision of medical corporations is specified by a Cabinet Order.

In order to secure the medical care needed in the community, a prefectural governor is to endeavor to conduct surveys and analysis concerning the state of activities of medical corporations that have their principal offices within the boundaries of the relevant prefecture and other matters specified by Order of the Ministry of Health, Labour and Welfare, and to publish their content.

A medical corporation (excluding those specified by Order of the Ministry of Health, Labour and Welfare) must, as provided by Order of the Ministry of Health, Labour and Welfare, report to the prefectural governor its revenues and expenses and other matters specified by Order of the Ministry of Health, Labour and Welfare for each hospital or clinic that it establishes.

The Minister of Health, Labour and Welfare is to implement the measures necessary to collect and organize information on the state of activities of medical corporations and other matters specified by Order of the Ministry of Health, Labour and Welfare, and to be able to promptly provide the public, through the use of the Internet and other advanced information and communications networks, with the results of the analysis of the organized information (hereinafter referred to as "medical corporation information").

When the Minister of Health, Labour and Welfare finds it necessary to implement the measures set forth in the preceding paragraph, the Minister may request a prefectural governor to provide information on the state of activities of medical corporations that have their principal offices within the boundaries of the relevant prefecture and other matters specified by Order of the Ministry of Health, Labour and Welfare.

A prefectural governor, when providing information in response to the request of the Minister of Health, Labour and Welfare pursuant to the provisions of the preceding paragraph, is to do so by electronic or magnetic means or other methods specified by Order of the Ministry of Health, Labour and Welfare.

To the extent that it does not interfere with the performance of the operations of the Minister of Health, Labour and Welfare, the Minister may, as provided by Order of the Ministry of Health, Labour and Welfare, in response to entrustment from the general public, use medical corporation information to prepare statistics and conduct statistical research that are specified by Order of the Ministry of Health, Labour and Welfare as having considerable public interest in being carried out using medical corporation information (referred to as "preparation of statistics, etc." in Article 69-7 and Article 69-8, paragraph (1)).

The Minister of Health, Labour and Welfare may, as provided by Order of the Ministry of Health, Labour and Welfare, provide medical corporation information to a person who conducts surveys, academic research or analysis that contributes to ensuring the medical care delivery system, or other surveys, academic research or analysis that have considerable public interest in being conducted with the provision of medical corporation information (excluding those conducted for use in the advertisement or publicity of specific goods or services).

When the Minister of Health, Labour and Welfare intends to provide medical corporation information pursuant to the provisions of the preceding paragraph, the Minister must hear the opinions of the Social Security Council in advance.

A person who has been provided with medical corporation information pursuant to the provisions of paragraph (1) of the preceding Article must take the measures specified by Order of the Ministry of Health, Labour and Welfare as necessary and appropriate for the secure management of the medical corporation information, such as preventing its leakage, loss or damage.

A person who has been provided with medical corporation information pursuant to the provisions of Article 69-4, paragraph (1), a person engaged in surveys, academic research or analysis relating to that medical corporation information conducted by that person, or a person who was either of these must not unreasonably disclose to another person the content of medical corporation information learned in relation to the use of that medical corporation information, or use it for an improper purpose.

The Minister of Health, Labour and Welfare may entrust all or part of the affairs relating to the collection and organization of information and the provision of the results of analysis under the provisions of Article 69-2, paragraph (3), the preparation of statistics, etc. under the provisions of Article 69-3, and the provision of medical corporation information under the provisions of Article 69-4, paragraph (1) to the Welfare and Medical Service Agency (referred to as "the organization" in the following Article).

A person who entrusts the Minister of Health, Labour and Welfare under the provisions of Article 69-3 and a person who is provided with medical corporation information pursuant to the provisions of Article 69-4, paragraph (1) must pay to the national government (in the case where the organization, having been entrusted pursuant to the provisions of the preceding Article, carries out all of the affairs relating to the preparation of statistics, etc. under the provisions of Article 69-3 and the provision of medical corporation information under the provisions of Article 69-4, paragraph (1), to the organization) a fee in an amount specified by Cabinet Order in consideration of actual costs.

When a person who intends to pay the fee under the preceding paragraph is a prefecture or another person specified by Cabinet Order as playing a particularly important role in the efficient provision of high-quality and appropriate medical care, the Minister of Health, Labour and Welfare may reduce or exempt the fee, as specified by Cabinet Order.

A fee paid to the organization under the provisions of paragraph (1) is to be the revenue of the organization.