No.2998
06/08/2022

Long-Term Care Services in Japan: Key Research Findings 2022

Market Size of Services in 4 Categories of Long-Term Care (“Long-Term Care Welfare Facilities for the Elderly”, “Long-Term Care Health Facilities for the Elderly”, “Short-stay Service”, and “Home-Visit/Day Services”) Totals to Over One Trillion Yen

Yano Research Institute (the President, Takashi Mizukoshi) has carried out a survey on the long-term care services market in Japan and found out the market trends and the trends at market players.


Summary of Research Findings

According to the FY2020 statistics by the Ministry of Health, Labor and Welfare (MHLW) on the market size of businesses in long-term care by service category, the size of “long-term care welfare facilities for the elderly (special nursing homes for the elderly)” was the largest, 1,965,128 million yen. Second largest was the “long-term care health facilities for the elderly” (1,346,028 million yen), followed by “short-stay service” (1,285,119 million yen) and “home-visit/day services” (1,002,806 million yen). A total of these 4 categories adds up to over one trillion yen. 

In terms of growth from the previous fiscal year, businesses in the category of “integrated facility for medical and long-term care”, which was introduced in April 2018, has grown by 97.0% from the preceding fiscal year. The market of “multifunctional long-term care in a small group home” was the second, up 21.8%, which started in April 2017 as a combined service of what was previously known as “nursing care preventive home-visit care” and “nursing care preventive commuting care”.  “Regular home visitation and as-needed visitation services” and “home-visit/day services” also expanded, by 18.3% and 10.5%, respectively. 

Noteworthy Topics

Shortage of Nursing Care Workers

Japan is facing a serious staff shortage of nursing care workers at long-term care facilities. 
According to the estimation of demand for nursing staff by prefectures, based on the projected amount of nursing care services in the 8th Long-Term Care Insurance Business Plan by MHLW, Japan needs 2.33 million workers by FY2023 (approximately 2.11 million [population in need for nursing care in FY2019] plus 0.22 million), 2.43 million by FY2025 (the same 2.11 million plus 0.32 million), and 2.80 million by FY2040 (the same 2.11 million plus 0.69 million). Nevertheless, the nursing industry is substantially understaffed, and the situation is likely to continue as Japan expects a natural increase of aged population. 

Research Outline

1.Research Period: November 2021 to March 2022
2.Research Object: Data related to long-term care insurance program and enterprises providing long-term care services
3.Research Methogology: Face-to-face interviews by the expert researchers (including online) and literature research

<Products and Services in the Market>

Services covered by long-term insurance systems, including in-home services, facility services, community-based services, and support for in-home nursing, etc.

Published Report

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