1、Mizuho Securities Equity Research16 July 2025Healthcare/OthersIndustry OverviewDomestic healthcare policy,sector implications(July 2025)Eyeing social security reforms agreed by LDP-Komeito-Japan Innovation PartySenior Analyst:Kazuki Furuyama+81 3 6202 8399kazuki.furuyamamizuho-ACT WITH EXTRA VISIONA

2、s we wrote in our 3 April 2025 report,the externals faced by medicaland healthcare businesses in Japan are becoming increasingly tough.Moreover,healthcare and nursing care are clearly losing priority in policydiscussion post-COVID,which together with fiscal constraints points toslim prospects for fi

3、scal support to ameliorate the tough environment.Meanwhile,the arguments advanced by parties with a strong commitmentto social security reform,such as the Japan Innovation Party,are gainingweight in medical policy debate,and the government has already agreedto several policy initiatives.In this repo

4、rt,we provide an overview of recenthealthcare policy trends,and discuss the future outlook and implications forthe equity market.KNOW:Current policy unlikely to spur upturn in medical institutionsoperationsThe government has not drawn up a support package that will provide radicalhelp for medical in

5、stitutions,which are currently facing tough operatingconditions.On 13 June,the Cabinet approved the Basic Policy on Economicand Fiscal Management and Reform 2025,which mentioned“adding asupplementary increment corresponding to adjustments reflecting currenteconomic and price trends,on top of growth

6、commensurate with the increasein costs due to an ageing population”.From this,we would expect medicalservice fee revisions in FY26 to be hiked by an amount equivalent to theincrease in base costs,including higher wages for healthcare workers.Atthe same time,given fiscal constraints,we think the hike