Provisional Translation
| OTO No. | 654 | Classification | MEXT-(2) |
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| Date of Acceptance | October 2, 2002 | Ministry/Agency Receiving Complaint | Cabinet Office |
| Responsible Ministries | Ministry of Education, Culture, Sports, Science and Technology | Related Laws | Finance Law, etc. |
| Complainant | American Chamber of Commerce in Japan | Exporting Countries | USA European countries, etc. |
| Subject | Promotion of introduction of advanced medical equipment through leasing at state university hospitals | ||
| Description of Complaint | 1. In the area of advanced medical equipment, including high-performance magnetic resonance imaging diagnosis systems and advanced surgical equipment, technological innovation is so fast that even one-year-old equipment can be outdated. On the other hand, advanced medical equipment costs too much and is mostly difficult to replace within a short period of time. Therefore, most medical institutions not only purchase but also lease such high-cost equipment. Local government-funded hospitals, those of the Labour Welfare Corporation (a public corporation under the control of the Ministry of Health, Labour and Welfare), MHLW-controlled state hospitals and others have introduced foreign advanced medical equipment through leasing. 2. However, state university hospitals under the control of the Ministry of Education, Culture, Sports, Science and Technology have no choice but to purchase such equipment, instead of leasing them, because accounting constraints under the government's single-year budget system prevent them from having multiyear leasing contracts. 3. In general, however, purchased equipment is usually used longer than leased ones. Many people at state university hospitals have called for introducing leased equipment that can be replaced in a short period of time to consistently provide up-to-date medical treatment. 4. An expansion of the leasing market for advanced medical equipment will contribute to promoting imports of foreign advanced medical equipment. 5. Based on the above, the ministry is requested (1) to specify the reason why state university hospitals under the control of the ministry cannot lease advanced medical equipment while other hospitals under the control of other government agencies (including public corporations) are allowed to do so, and (2) to remove the relevant impediments and take measures to allow state university hospitals to lease advanced medical equipment. |
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| Details of Measures | The ministry has replied as follows: 1. Single-year leasing is allowed. But automatic renewal clauses cannot be inserted into leasing contacts for renewal. (See III 2.6 in "Measures Concerning Procurement of Medical Technology Products and Services in Japan's Public Sector) 2. Multiyear leasing can be made available if a budget measure to this effect is taken under Article 15 (contract resulting in Treasury obligation) of the Finance Law. |
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| Classification of Processing | Ca | Directions | IV |
| Remarks | A written reply was made on October 17, 2002. A written reply was made on January 31, 2003. |
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