ICT Systems & Solutions for Long-Term Care Providers in Japan: Key Research Findings 2023

Market of ICT Systems and Solutions for Long-Term Care Facilities Expected to Grow Marginally

Yano Research Institute (the President, Takashi Mizukoshi) carried out a survey on the domestic market of ICT solutions for long-term care providers and ICT solutions for the elderly care (watch service for the elderly at home, watch service for long-term care facilities), and found out the market size transitions, trend of market players, and future perspectives.

This press release discloses the market trends of ICT solutions for long-term care facilities.

Summary of Research Findings

Domestic demand for ICT solutions at long-term care facilities is mostly renewals (updating of an outdated system). When opening a new facility or management office, or when their management corporations go through mergers, etc., long-term care providers renew their contract or sign a new contract.

Our estimate on the size of the ICT Systems & Solutions for long-term care service providers (based on the sales of businesses) was 25,213 million yen in FY2022, 102.8% of the previous year. While the benefit of governmental financial relief during the COVID-19 crisis diminished, deterioration of business environment led by care worker shortage and surge in prices of utility, fuel, food, and other products, caused long-term care service providers to postpone system deployment of any kind.

Although the reclassification of new coronavirus to Category 5 infectious disease in FY2023 eased behavioral restrictions, ongoing price surge and labor shortage continue to strain long-term care businesses. In addition, given the revision of long-term care service fees upcoming in FY2024, long-term care service providers are likely to defer system deployment in FY2023. For these reasons, the market is forecasted to grow only marginally.

Noteworthy Topics

Consolidation of Long-term Care Providers Induce IT System Renewal

Amidst the persistent labor shortages, long-term care service providers are forced to operate without passing on the soaring prices to service charge, because of the charges are fixed based on the long-term care insurance system. As seen in the shutdown of small- and micro- long-term care operators in particular, considering that the market situation continues to be rough, consolidation of long-term care service providers is expected to accelerate further.

In addition, the government started a new framework in April 2022 that promotes consolidation of social welfare corporations to increase productivity of the long-term care service operations. Under the system, multiple social welfare corporations become a group company to collectively recruit caregivers, strengthen management, and promote ‘coexistence’ for these businesses and local communities. According to the Ministry of Health, Labour and Welfare, there are only 20 of these corporations as of October 2023. Still, the number of groups is expected to increase hereafter.

In the process of consolidations, long-term care providers are likely to update/deploy systems for various functions, including long-term care insurance claims, with a view to improving productivity and reducing costs.

Research Outline

1.Research Period: October to December 2023
2.Research Object: Providers of ICT solutions for service providers of long-term care/elderly- care, long-term care service providers, etc.
3.Research Methogology: Face-to-face interviews by our expert researchers (including online interviews), mailed questionnaire, and literature research

<What are ICT Solutions for Long-Term Care Providers?>

ICT systems and solutions for long-term care providers are those systems and solutions introduced to long-term care facilities to streamline the long-term care insurance claiming tasks, generate various documents including long-term care plans, and manage those data created. In principle, the long-term care insurance system requires electronic submission of insurance claims (online or via electronic media), thereby each long-term care service office needs to have a system one way or another.

<About the Market of ICT Systems and Solutions for Long-Term Care Providers>

In this research, the market of ICT systems and solutions for long-term care providers include packaged solutions or cloud-based solutions for long-term care facilities provided by private software vendors or private application service providers. The market size is calculated based on the sales at businesses. However, neither the data transmission software provided by All-Japan Federation of National Health Insurance Organizations, nor any other data transmission services provided by private vendors as its renewal, are not included.

<Products and Services in the Market>

ICT systems and solutions for long-term care facilities, ICT solutions for the elderly-care (watch service for the elderly at home, watch service for long-term care facilities)

Published Report

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