Healthcare

AT: Accelerating Transformation
Accelerated growth enabled by capturing market trends

*Affiliations and titles as of August 2024

Main Services

  • Medical and nursing care equipment and facility leases
  • ESCO and energy services business for medical institutions
  • Operational consulting and BPO for hospitals and nursing care facilities
  • Factoring of medical, nursing care, and dispensing pharmacy receivables
  • Business succession financing
  • Purchase and disposal of used medical equipment

Strong Point

  • Possesses an expansive service menu encompassing leases covering medical and nursing care equipment and large-scale nursing care facilities as well as business succession and turnaround financing
  • Provides BPO services that contribute to the more efficient management of medical and nursing care businesses and ESCO and energy services that raise the energy efficiency of facilities
  • Purchase and dispose of medical equipment from a wide range of medical institutions spanning clinics to large hospitals, thereby contributing to the circular economy

Plans under Fuyo Shared Value 2026 and Vision for 2030

Vision for 2030

3 Good helth and well-being
  • A company that contributes to improvement in the quality of medical and nursing care in Japan by helping to maximize the value of management resources (people, tangible assets, funds, time, information) held by medical and nursing care providers and dispensing pharmacies
  • A company that realizes both the solution of medical and nursing care issues (non-financial value) and profit growth that capitalizes on market trends (financial value) at a high level

Plans under Fuyo Shared Value 2026

  • 1.
    Support the creation of 1,330 new rooms at elderly care homes over a 5-year period in collaboration with alliance partners, in anticipation of the super-aging of society
  • 2.
    Implement digital transformation (DX) in medical and nursing care by providing solutions in collaboration with Group companies and alliance partners to address management issues for each development stage of medical and nursing care businesses
  • 3.
    Provide a wide range of information and products useful to solving management issues faced by medical groups through group company service websites.

FY2023 in Review

With the gradual winding down of publicly funded support to address the COVID-19 pandemic, health care businesses (medical and nursing care providers and dispensing pharmacies) continued to face a challenging management environment. In response, we provided services that contribute to solving their issues, enabling us to maintain ordinary profit at the same level as in the previous fiscal year. We also started the first project of our region-specific healthcare fund initiatives that launched in 2023, contributing to building a stable foundation in the region. We also provided 210 rooms for new elderly care homes.
For the first time, the Fuyo Lease Group also exhibited at the International Modern Hospital Show 2023, sponsored by the Japan Hospital Association and the Nippon Omni-Management Association, offering proposals healthcare-related solutions to medical and nursing care providers.

Financial targets

Graph of ordinary profit (billion yen) and ROA (return on operating assets) (%). Operating assets balance 2023/3: 879, 2024/3: 874. 2023/3 ordinary profit: 1.8 billion yen, ROA (return on operating assets): 2.0% 2024/3 ordinary profit: 1.8 billion yen, ROA (return on operating assets): 2.1% 2027/3 (planned): ordinary profit: 4.5 billion yen, ROA (return on operating assets): 3.3%

Non-financial targets

2023/3

2024/3

March 2027 targets

Number of new rooms provided at elderly care homes

553

763

1,330

Management support-related financing in medical and welfare markets* (billion)

217

229

560

  • *
    The balance of operating assets for financing related to FPS Medical and business succession.

Issues Ahead and Response Measures

Issues Ahead

Response Measures

Funding support after the end of financial support policies to address COVID-19

Provide funding in response to the needs of healthcare providers

Address the permanent shortage of personnel among healthcare providers

Bolster personnel in BPO services and advance the shift to DX

TOPICS

1. Supporting Development of a Next-Generation Nursing Care Business Model Through Finance, Offering Reassurance with Expansion of Regional Elderly Care Homes

Fuyo General Lease worked with a regional bank to support the development of private nursing homes, providing financial support for the expansion of regional elderly care.
This will work to address the severe shortage of personnel in the nursing care industry by achieving two things: (1) An improved quality of care through employment in a variety of professions, including physical and occupational therapists as well as care workers and nurses; and (2) Improved compensation for nursing care staff with additional incentive programs for the use of scheduled and as-needed home visit-based nursing care.

2. Use of Outsourcing Solves Issue of Securing Personnel in Conjunction with Business Growth

Accretive has launched full-scale BPO services, including insurance billing and other operations for home healthcare and nursing care providers. As demand for these care services increases with Japan's aging population, providers are facing a serious shortage of personnel. GRID Co.,Ltd. which for many years has provided in-home and other nursing care services in Kyoto, was also dealing with the issue of securing personnel in conjunction with an expansion of its business. Using our services, it was able to reduce the burden involved with billing operations, enabling the company to focus on services for its users.

3. Dismantling and Removal of High Energy Radiation (LINAC) and Other Treatment Devices Makes Recycling Possible

FUJITA conducts dismantling and removal of linear accelerators (LINACs), extremely heavy equipment the handling of which requires a high degree of skill. LINACs are installed in radiation controlled areas of acute care facilities, thus in addition to the technical aspects of dismantling the equipment, FUJITA takes steps to ensure the safety of the working environment, including by measuring radiation exposure. The medical facility will dispose of parts of the dismantled device as radioactive waste, as appropriate. The rest consists largely of scrap iron and other material and is sent for recycling, a contribution to realizing a circular society.