In its first report on medical reform, the council to promote deregulation -- an advisory body to Prime Minister Junichiro Koizumi -- recently recommended lifting some restrictions on "mixed medical care," easing conditions for the private operation of hospitals and reorganizing the government's Central Social Insurance Medical Council, which, at present, lacks transparency and neutrality at present.

The report comes as Japan's medical system faces serious problems, notably a shortage of doctors and a growing number of medical malpractice cases.

Mixed medical care is a combination of services covered and not covered by public health insurance. Under the existing system established by the health ministry, a patient receiving mixed medical care must, in principle, pay the entire cost of services. Exceptions are made in cases involving "highly advanced care" and extra-charge hospital beds.