In an Era Where Hospitals Are Disappearing Even in Urban Areas: 'Textbook of Hospital Cost Reform,' a Book on Cost Optimization for Sustainable Hospital Management, Released Today!

Cross Media Publishing Co., Ltd., a publisher specializing in business and practical books (Headquarters: Shibuya-ku, Tokyo; President & CEO: Yukio Koizawa), released the book 'Textbook of Hospital Cost Reform' on August 28, 2026.

This book compiles practical methods of 'LCO (Low-Cost Operation)' and psychological approaches to favorable price negotiations, authored by a hospital management consultant who has supported over 200 hospitals and achieved a 97.5% success rate in cost reform. With more hospitals facing financial difficulties due to rising prices, this book is highly recommended for all hospital stakeholders.

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● Nearly 70% of Hospitals Are in the Red, Facing Financial Crisis

Due to sharp inflation, rising operational costs, and increasing labor expenses, many Japanese hospitals are facing unprecedented financial difficulties.

According to the '2025 Hospital Management Periodic Survey Summary – Final Report (Survey Results)' published in November 2025 by the Four Hospital Organizations Council (Japan Hospital Association, All Japan Hospital Association, Japan Medical Association, Japan Psychiatric Hospitals Association) with 1,629 valid responses, comparing hospital financial performance between fiscal years 2023 and 2024, the proportion of hospitals with negative medical operating income rose from 70.8% to 74.6%, and those with negative ordinary income increased from 52.1% to 65.0%.

Moreover, in FY2024, the medical operating income per 100 beds was minus ¥180.43 million, and ordinary income was minus ¥81.02 million—both deficits exceeding the previous year.

Why are so many hospitals running deficits and seeing increasing losses, even as the baby boomer generation becomes elderly and medical demand grows? This reflects structural challenges within Japan's hospital system.

Examining hospital finances reveals that while medical revenue is increasing, costs (such as pharmaceuticals, medical supplies, and outsourcing fees) are growing at an even faster pace.

Additionally, hospitals, being large organizations with substantial facilities, see operational costs rise sharply with even small increases in utilities like electricity and gas. Rising prices also necessitate salary increases for doctors and nurses, resulting in more hospitals experiencing revenue growth with declining profits.

On the other hand, unlike general businesses, hospitals cannot freely raise prices when costs increase because medical service fees and prices for specific insured medical materials are government-regulated.

Therefore, it is essential to eliminate wasteful spending, review cost structures, and create investment capacity to enhance the value of medical services provided.

● What Is the 'Circular Profit Model' for Sustainable Hospital Management?

To address this, the book explains how to build a 'Circular Profit Model'—ensuring profitability even in tough economic conditions by balancing 'LCO (Low-Cost Operation: cost reduction)' and 'VUP (Value-Up: revenue enhancement)'—and reinvesting gains into hospital staff, patients, and the community.

It also introduces psychological approaches to gain support from medical professionals such as doctors and nurses and to conduct favorable price negotiations with suppliers.

Some hospital stakeholders may resist the idea of cost reduction, fearing a decline in medical quality. However, equating cost reduction with lower care quality is nonsensical. Proper cost optimization and generating investment capacity actually contribute to improving medical quality.

By questioning established norms and assumptions, you will surely uncover the 'hidden treasure trove' that currently remains latent.

After graduating from university, the author worked on clinic opening support within a medical corporation before founding GUTS Corporation in 2017 as a professional firm specializing in hospital management consulting.

While many peers offer only external advice, the author's strength lies in entering the field directly, working alongside hospital presidents, directors, administrative managers, and operational staff to conduct price negotiations with suppliers and internal coordination.

The author has achieved a high success rate of 97.5% in cost reform across over 200 hospitals supported to date.

"Hospital management can be improved with just a few smart adjustments."

"I want to send encouragement to all those fighting hard on the front lines of management every day."

This book is packed with the author's expertise and passion, making it essential reading for all hospital stakeholders.

▼ Recommended For:

- Hospital board chairs, hospital directors, administrative managers, and planning department staff

- Hospital administrative staff (medical affairs, procurement, purchasing, facilities management)

▼ Table of Contents

Chapter 1: Transforming Hospitals into Profitable Organizations with the Circular Profit Model

Chapter 2: Defensive Strategy: Cost Optimization through Low-Cost Operation

Chapter 3: Offensive Investment: Revenue Growth Strategies through Value-Up

Chapter 4: Psychological Approaches to Gain Staff Support and Conduct Effective Negotiations

Chapter 5: Practical Sustainable Hospital Management Toward 2040

● Author Introduction

Jin Shimizu

Representative Director, GUTS Corporation. Born in Maebashi City, Gunma Prefecture, in 1979. Master of Sociology (Social Psychology). After completing graduate studies, joined a medical corporation in Tokyo, handling procurement and contract management at the headquarters. Transitioned to hospital management consulting in 2009. Founded GUTS Corporation in April 2017 and assumed the role of Representative Director. Advocates a consulting framework that applies social psychology and behavioral economics to hospital management, achieving both motivation enhancement and organizational reform. The company supports over 200 medical institutions using the dual strategies of 'LCO (Low-Cost Operation: cost reduction)' and 'VUP (Value-Up: revenue enhancement)' (current contract achievements: 71 medical corporations, 61 municipal hospitals, 12 Japanese Red Cross/Saiseikai hospitals, 10 university hospitals, 12 former national hospitals, and 12 others = 178 total nationwide). Boasts a 97.5% success rate in cost reduction. Believes that untangling the complex web of medical expert groups both inside and outside hospitals is key to problem-solving, and aims for management improvement through collaboration with hospital staff, grounded in psychology and management science, leveraging practical experience and information sources with 'GUTS'.

● Book Information

'Textbook of Hospital Cost Reform'

Author: Jin Shimizu

Price: ¥2,420 (¥2,200 + 10% tax)

Format: A5 size / 200 pages

ISBN: 978-4-295-41251-9

Publisher: Cross Media Publishing Co., Ltd. (Cross Media Group Co., Ltd.)

Release Date: August 28, 2026

◆ Related URLs (Our Website, etc.)

https://cm-publishing.co.jp/books/9784295412519/

Amazon https://www.amazon.co.jp/dp/42954125