Japan's Elderly Care Homes Going Under At Record Pace
A survey shows that nursing-care providers in Japan are going out of business at a record pace this year. Lingering effects from the pandemic and rising costs are blamed for the industry's ongoing troubles.
Tokyo Shoko Research says the number of failures in the nine months through September reached 100 for the first time since 2000.
The figure has nearly doubled from the same period last year. The full-year total is on course to top the all-time high of 118 in 2020.
Forty-five of the failed businesses provided day-care services or short stays. Thirty-six offered home-visit care. And 10 were residential nursing homes. All three sectors reported an increased number of failures compared to a year earlier.
The record numbers are attributed to labor shortages and lower revenues during the height of the pandemic, when people refrained from seeking care.
The providers are also struggling with higher costs for food, fuel and utilities. The inflation coincides with a phasing-out of COVID-related financial support from the central and local governments.