Market Overview

In this survey, LTC back-office solutions market encompasses (i) premium reimbursement systems (i.e., filing a claim to the National Health Insurance plan), (ii) functional training support system, (iii) electronic billing and receipt system, (iv) care monitoring services for care providers, and (v) intercommunication system. The market size is estimated at 54,576 Million Yen in FY2024, based on the sales of domestic manufacturers and service providers. The adoption of digital solutions within the LTC sector has been accelerated by government subsidies aimed at ICT/DX integration. These initiatives are designed to bridge the gap in operational efficiency caused by chronic labor shortages. With continued public funding, the market is poised for sustained growth in system installations.

Noteworthy Topics

Expanding Usage of Intercommunication Systems

Historically, LTC facilities have relied on legacy hardware—such as PHS handsets, transceivers, and standard phones—for staff communication. While intuitive, these tools are limited to one-on-one interactions and fail to support real-time, team-wide information sharing. Furthermore, the lack of integration with monitoring and nurse-call systems has forced staff to carry multiple redundant devices.

Supported by government initiatives, facilities are now pivoting toward integrated intercom platforms (both hardware and apps). Currently, market penetration sits at approximately 10%, but adoption is poised to accelerate. This shift is driven not only by operational convenience but by significant financial incentives: government ICT/DX subsidies and premium reimbursements under the Long-Term Care Insurance System for facilities that modernize their communication infrastructure.

From a technical standpoint, next-generation LTC intercoms act as a central hub. Through API integration, these systems now unify nurse calls, sensor alerts, and nursing records into a single interface. Advanced features—such as speech-to-text, real-time translation, and mobile access to nursing records—provide a high-value proposition that appeals to facilities ranging from small boutique homes to large-scale care networks.

Future Outlook

Historically, reimbursement systems used at LTC facilities were highly fragmented, with software customized to the specific paperwork and data requirements of individual service types. Consequently, even large-scale operators often managed a disparate patchwork of systems across their facility networks.
Today, this landscape is shifting toward centralized integration. Driven by industry consolidation and an urgent need for operational efficiency and cost reduction, providers are increasingly migrating to unified enterprise platforms.
As the market transitions into a replacement cycle, vendors can no longer rely on basic functionality. Differentiation now depends on delivering a superior value proposition—specifically through scalability, intuitive usability, and AI features such as automated speech-to-text modules that streamline nursing documentation.

Research Outline