27 percent of nursing homes in Japan cannot afford rising costs.

It has been reported that 27 percent of nursing homes in Japan may go out of business or suspend their services due to rising costs and expenses.

An online survey of more than 1,200 companies conducted by the Association of Care Service Providers “Minkaikyo” revealed the problems posed by rising costs in the industry.

According to the study, 27 percent of nursing homes and nursing businesses could go bankrupt or go out of business within a few years due to rising costs and expenses.

90 PERCENT ARE NEGATIVELY AFFECTED

It was reported that more than 90 percent of the nursing homes contacted were negatively affected by the increase in costs and spending volumes, and that some of them have reduced the number of staff and the quality of service in the last period.

When asked about their business plans for the future, 64.3 percent of companies said that they can overcome financial difficulties and continue their activities.

Among the most common responses to the question about ways to combat rising costs are saving on electricity and forgoing pay raises and bonuses.

“Care service companies cannot pass cost increases on to consumers in the same way as other companies, and this is having a significant impact on their business,” the Minkaikyo official said in a statement. (AA)