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.A survey showed 27 percent of nursing homes and related service facilities in Japan may go bankrupt or shut down operations in a few years if prices and utility costs continue to surge, local media reported.
The online survey conducted by nursing care groups in March covered around 1,200 nursing care homes and facilities across Japan. The survey found that over 90 percent of facilities have been affected by rising prices and costs, according to Kyodo News.
Among multiple answers on how these facilities are dealing with increased costs due to price hikes, the most common was saving electricity and goods, followed by withdrawing savings and reducing or forgoing salary increases and bonuses, the survey showed. The team was one of many who carried out the online poll in March that covered roughly 1,200 nursing homes and hospitals throughout Japan, as per Kyodo News. The fact that some institutions have cut staff or delayed employment because of high costs raises worries about a potential reduction in the quality of nursing care services. According to the report, price rises have had an impact on over 90 percent of facilities. When these facilities were asked about their future business plans, 64.3 percent felt they could overcome the difficulties and carry on as usual, followed by those who were concerned about ceasing operations or going out of business in the ensuing years, according to Kyodo News.
The multiple responses to the question of how facilities are coping with rising costs as a result of price rises were to save money on commodities and power. These responses were closely followed by withdrawals from savings and lowering or forgoing wage increases and bonuses. “Nursing care facilities are not able to pass on cost increases to consumers in the same way as other companies, and this has a significant impact on their business,” said an official of Minkaikyo, an association of nursing care providers. There are also concerns about a potential decline in the quality of nursing care services as some facilities have either reduced staff or postponed hiring due to high prices, said the report.