Japan sees record healthcare facility closures, bankruptcies

TOKYO, Jan. 22 (Xinhua) -- The number of healthcare facilities that closed or went bankrupt reached 786 in Japan in 2024, the highest since 2000, according to survey results by a credit research company.

Some 64 medical institutions filed for bankruptcy, and 722 others closed their operations, according to Teikoku Databank.

The breakdown showed that 618 of these were "clinics," followed by 145 "dental offices" and 23 "hospitals."

Key factors behind the closures include the increased awareness of patients about the quality of services and facilities, and the rising costs of pharmaceuticals and materials, along with wage increases, which pushed many businesses to cease operations.

Additionally, 80 percent of the closures were clinics, where the aging of management is particularly severe. A study of the age distribution of clinic operators revealed that more than 54.6 percent of clinic owners were over 70 years old.

Teikoku Databank has warned that healthcare facilities that run out of funding may experience a decline in service quality, which could lead to even fewer patients and a vicious cycle of further closures. Based on current trends, the number of closures and bankruptcies could reach 1,000 by 2026.