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The third wave of spread of the new coronavirus infection is rampant, but it was found that the bankruptcy of the “business of social assistance and nursing for the elderly” and the dissolution and closure of businesses have reached a record. On December 3, 2020, the Tokyo Chamber of Commerce and Industry announced the results of a survey on the bankruptcy status of senior nursing and wellness care companies for 2020.
In many cases, the business of wellness and nursing care for the elderly has been in a slump for some time, but it seems that refraining from use and rising costs due to corona disease have helped.
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The management of nursing homes is increasingly difficult (in the photo is a picture)
Use the chorus and increase the cost due to crown damage
According to the Tokyo Chamber of Commerce and Industry Research, from January to December 2, 2020, the number of bankruptcies in the “elderly nursing care and welfare business” reached 112, the highest number high since 2000 when the Nursing Care Insurance Act was enforced in 2017 and 19. The number of cases exceeded 111 cases a year and the highest number was updated =See the figure below。
The factors appear to be complex. Originally, in the nursing care industry, there were many “companies that left the car” in anticipation of the aging of society. In addition to this, labor shortages and intensifying competition have increased the number of companies that have been mismanaged.
Furthermore, the new Corona epidemic has had a considerable impact. Companies face more difficult recruitment and refrain from using services that do not like the risk of infection. He was forced to increase additional expenses for infection prevention measures.
Considering the number of bankruptcies per service, “home care” with a severe shortage of home helpers accounted for 52 cases (46.4% of the total), which represents about half. In addition, there were 36 cases of “daily travel / short-term admission”, 10 cases of “paid nursing home” and 14 cases of “other”. Small and medium bankruptcies are particularly notorious, with debts of less than 100 million yen accounting for 80.3% of the total.
Annual number of nursing home bankruptcies (according to the Tokyo Trade and Industry Research)
On the other hand, from January to October this year, there were 406 cases of closure / dissolution of nursing care providers. At this point, it exceeded the total number of the last year (395 cases). At the current rate, it is highly likely that it will far exceed the record (445 cases) in 2018. Due to the impact of the new crown and the labor shortage, the future is uncertain and the number of cases of decision to close the business is increasing. There seems to be a growing number of cases where business is halted while management is strong, such as mismanagement, a labor shortage, and loss of business motivation due to the crown disaster.
In April 2021, the nursing care rate will be reviewed once every three years, but the nursing care industry has many problems besides Corona, such as labor shortages, productivity improvement and training of nursing staff. . According to Tokyo Commerce and Industry Research, the bankruptcy, closure, and dissolution of the nursing care business is likely to be further impacted by additional support for crown measures and the revision of nursing care fees.
