Osaka – A medical corporation accepting COVID-19 patients at its hospital in Osaka has applied for bankruptcy protection with the Osaka District Court, according to Teikoku Databank Ltd.
The corporation, called Yuaikai, which had debts of ¥5.2 billion, filed for protection under the civil rehabilitation law Thursday.
The corporation, based in Osaka, suffered a deterioration in business conditions as its outpatients decreased after its hospital began accepting COVID-19 patients.
According to Teikoku Databank, the hospital was the first among those admitting coronavirus patients to go bankrupt in Japan.
The corporation’s Matsumoto Hospital in Osaka opened in 1938.
Yuaikai’s financial conditions deteriorated mainly due to a heavy investment to build a new hospital ward.
It took an additional financial blow from a slump in the number of outpatients after nursing staff and hospitalized patients were found to have contracted the coronavirus in December last year.
The number of outpatients fell further after the hospital started to accept COVID-19 patients with mild to moderate symptoms in January this year.
The corporation aims to rehabilitate itself with support from a sponsor.
By subscribing, you can help us get the story right.