Bankruptcy rate of nursing care service companies reaches an all-time high
According to a survey conducted from January 1 to November 1, 2024, the number of bankruptcies in Japan's nursing care service industry has reached a record high.
According to data from Tokyo Shoko Research, as of November 1, 2024, the number of bankruptcies of nursing care service companies in Japan has reached an all-time high of 144 (data from January 1 to November 1, 2024).
Looking at the details, the most bankruptcies were "home nursing care service companies" with 71 cases, followed by "day service/short-term nursing care service" with 48 cases and "paid nursing homes" with 11 cases. The main reason for these companies going bankrupt is a shortage of nursing care staff. This labor shortage has led to a situation where the necessary care cannot be provided sufficiently, and the quality of services has declined.
In addition, the rising cost of nursing care equipment and utility costs is also a problem. This has increased operating costs, and many companies are facing financial difficulties. This burden is particularly heavy for small and medium-sized enterprises, and there are an increasing number of cases where they are forced into bankruptcy.
According to Tokyo Shoko Research, many companies are facing multiple problems such as labor shortages and rising costs. Unless the Japanese government and local governments address these issues, the number of companies going bankrupt is likely to increase in the future. In particular, with the declining birthrate and aging population, the demand for nursing care services is only increasing, and labor shortages and cost issues are becoming serious issues.
As bankruptcies continue, there are concerns that the provision of nursing care services will be affected. It may become increasingly difficult for users and their families to secure reliable nursing care services. Therefore, the government and industry associations need to take measures immediately to ensure the sustainability of the nursing care industry.
Source: https://www3.nhk.or.jp/news/html/20241101/k10014626271000.html
