27% of nursing homes in Japan face bankruptcy due to soaring prices: Survey

Some 27% of nursing homes and related facilities in Japan could go into bankruptcy or may shut down operations in coming years due to rising prices and utility costs, according to a survey by nursing care groups.

"Nursing care facilities are not able to pass along cost increases to consumers in the same way as other companies, and this has a significant impact on their business," the Tokyo-based Kyodo news agency quoted an unnamed official of Minkaikyo, an association of nursing care providers, as saying.

Minkaikyo was among those who conducted the survey of some 1,200 nursing care homes across the country.

According to the survey, the majority of nursing homes said that the soaring prices are affecting their facilities and compelling them to reduce staff or postpone new hiring.

However, 64.3% of the facilities hoped to continue their operations despite price hikes.

According to Japan's Interior and Communications Ministry's data, the number of people aged 75 years and above rose to 19.3 million, while those 65 and above increased to 36.2 million in 2022.