Japan nursing care service profitability falls in FY 2018

December 27, 2019

Tokyo--The average profitability rate at Japanese elderly nursing care services fell 0.8 percentage point from the previous year to 3.1 pct in fiscal 2018, a welfare ministry survey showed Friday.

Profitability deteriorated at 14 of the 22 service sectors covered by the public insurance program for elderly nursing care, according to the fiscal 2019 survey on business conditions of the industry.

The fall is believed to have reflected higher costs due to labor shortages.

The overall business conditions in the industry are "tough," a ministry official said.

The ministry conducts the survey every three years to collect data to refer to when considering related policy measures, including nursing care compensation reviews.

Based on the latest survey, the ministry will decide on the details of the next such revision in fiscal 2021.

The survey covered 15,208 facilities and establishments nationwide, of which 48.2 pct gave valid responses.

All sectors were profitable in fiscal 2018, except for the in-home support services. But most of the sectors grew less profitable, particularly the outpatient rehabilitation and outpatient day care services.

On the other hand, profitability expanded in a sector in which nursing care staff and others visit users' homes anytime around the clock when requested. Jiji Press