The Hatoyama administration has decided to raise remuneration to medical institutions for fiscal 2010 and 2011. Although the raise amounts to only 0.19 percent on average, significantly it is the first raise in 10 years. The decision came against the Finance Ministry's demand that payments be lowered by about 3 percent. It is hoped that the decision will serve as the first meaningful step toward resuscitating the nation's medical services, which are collapsing in some rural regions.

Every other year the Central Social Insurance Medical Council (Chuikyo) determines how much hospitals and clinics should be paid for medical treatments. Each of the past four remuneration reviews, under the Liberal Democratic Party-led government, resulted in decreased payments. The overall decrease during the period was near 8 percent. The last year that Chuikyo decided to raise remuneration was 2000, when it decided on a 0.2 percent increase.

Because of the decline in remuneration over the past decade, many hospital doctors, who often work under harsh conditions, have quit, and the resulting doctor shortages have forced many hospitals, especially in rural regions, to close emergency medicine, obstetric and pediatric departments. Such closures have caused inconvenience and worry for local residents.