Although Japan is perceived as a low-corruption country, its medical device industry has experienced recurrent ethical lapses, including high-profile cases such as the GE/Yokogawa scandal (1991), Olympus scandal (2000s to 2010s), Nihon Kohden’s quid pro quo donations (2021), and Zeon Medical’s stent kickback scheme (2023). These incidents reveal systemic vulnerabilities, including opaque pricing structures, close doctor-industry relationships, weak enforcement mechanisms, and cultural norms that have historically tolerated gift-giving. The chapter examines the legal and regulatory framework governing public and private sector bribery in Japan, highlighting limitations in prosecuting private hospital corruption. It also evaluates industry self-regulation, such as the Fair Competition Code and transparency guidelines, as well as government responses influenced by international pressure, particularly from the OECD. While significant progress has been made in compliance and transparency, the chapter argues that further legal reforms, robust enforcement, and cultural shifts are essential to fully eliminate bribery and ensure procurement decisions in healthcare are based solely on clinical merit.

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Bribery in Japan’s Medical Device Sector: A Historical and Contemporary Analysis

  • Akihiko Ozaki

摘要

Although Japan is perceived as a low-corruption country, its medical device industry has experienced recurrent ethical lapses, including high-profile cases such as the GE/Yokogawa scandal (1991), Olympus scandal (2000s to 2010s), Nihon Kohden’s quid pro quo donations (2021), and Zeon Medical’s stent kickback scheme (2023). These incidents reveal systemic vulnerabilities, including opaque pricing structures, close doctor-industry relationships, weak enforcement mechanisms, and cultural norms that have historically tolerated gift-giving. The chapter examines the legal and regulatory framework governing public and private sector bribery in Japan, highlighting limitations in prosecuting private hospital corruption. It also evaluates industry self-regulation, such as the Fair Competition Code and transparency guidelines, as well as government responses influenced by international pressure, particularly from the OECD. While significant progress has been made in compliance and transparency, the chapter argues that further legal reforms, robust enforcement, and cultural shifts are essential to fully eliminate bribery and ensure procurement decisions in healthcare are based solely on clinical merit.