Public hospitals operated by local governments across Japan are facing increasingly severe financial pressure.

Fiscal 2024 results compiled by the internal affairs ministry show a record combined ordinary loss of ¥395.2 billion ($2.56 billion), squeezed by higher personnel costs and rising prices. More than 80% of facilities posted red ink.

As many of the hospitals provide essential but unprofitable services in depopulated areas, local governments and hospital operators are calling for stronger support to sustain regional health care systems.