Japan: 27 per cent nursing homes face bankruptcy owing to price hikes, survey says

Tokyo [Japan], July 8 (ANI): Almost 27 per cent of nursing homes and related service facilities in Japan may go out of business or go bankrupt in the next few years if rising pricing and utility expenses continue to put pressure on them, Kyodo News reported citing a survey by nursing care groups.
An official of Minkaikyo, an association of nursing care providers, said, "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 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 per cent of facilities.
When these facilities were asked about their future business plans, 64.3 per cent 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.
According to the survey, 16.2 per cent of respondents selected staff cutbacks and the halting of new hires, Kyodo News reported. (ANI)