Today I found the reason why some dentists have closed down their practices since last December. Every month I record medical expenses for tax return documentation. A comparison of last year's records with this year's shows a significant decrease in expenses.
Actually, the Japanese gov't decided to raise the standard fees for medical and dental services by 0.57%, but while drug prices were adjusted in April, the fee hike for medical and dental services was delayed until June.
Before the new rates took effect, small dental clinics had already been facing a severe decrease in profits. Ultimately, reimbursements failed to offset soaring utility and material costs, choking the clinics' daily cash flow. I hadn't noticed it until now. What an awful policy it is!
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