Elderly Nursing Homes in Japan Turned Unprofitable in FY 2022

From Jiji

November 10 2023

TOKYO – Special nursing homes for the elderly in Japan turned unprofitable for the first time in fiscal 2022, hit by rising utility and labor costs amid inflation, a welfare ministry survey showed Friday.

The profit rate of special nursing homes, excluding the impact of subsidies related to the COVID-19 pandemic and under the government’s stimulus measures, stood at minus 1.0 pct.

The margin rate of healthcare facilities for the elderly, meanwhile, was minus 1.1 pct.

Of the 22 nursing care service categories in the survey, 11, including special elderly nursing homes and elderly healthcare facilities, logged declines in profitability.

The average profit rate for all categories was 2.4 pct, down 0.4 percentage point from the previous year and matching the record low set in fiscal 2019.