Some 27% of nursing homes and related service facilities in Japan may go bankrupt or shut down operations in a few years if soaring prices and utility costs continue to put pressure on them, according to a survey by nursing care groups.
"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," an official with Minkaikyo, an association of nursing care providers, said.
The group was among those that conducted the online survey in March covering around 1,200 nursing care homes and facilities across Japan.
There are also concerns about a potential decline in the quality of nursing care services as some facilities have either reduced staff or postponed hiring due to high prices.
The survey found that over 90% of facilities have been affected by price increases.
When these facilities were asked about their future business plans, 64.3% felt they can weather the challenges and continue operating, followed by those who were worried about shutting down their operations or going out of business in coming years.
Among multiple answers on how facilities are dealing with increased costs due to price hikes, the most common was saving electricity and goods, followed by withdrawing savings and reducing or forgoing salary increases and bonuses.
Some 16.2% chose staff reductions and suspension of new hiring, according to the survey.