News On Japan

Sixty Percent of Hospitals in Japan Operating in the Red

OSAKA - Around 60 percent of hospitals across Japan are operating in the red, creating a critical situation where closures and bankruptcies are no longer a distant threat. Behind the figures lies a deepening financial crisis that is raising questions about whether patients can continue to rely on stable access to medical care.

Five medical associations in Osaka Prefecture held a press conference on October 2nd to sound the alarm.

Osaka Medical Association President Yasushi Kano said: "Having hospitals and clinics you can always rely on nearby—can we still take that for granted? A quiet but serious shift is taking place in Osaka’s medical system. Both clinics and hospitals are facing a crisis in their operations."

An emergency survey by the Japan Hospital Association found that about six out of ten of the more than 1,800 hospitals that responded nationwide were running deficits.

A visit to Tsukuba University Hospital in Ibaraki Prefecture revealed the realities of this financial strain. In the outpatient waiting area, chairs were left in tatters, and walls near doors were patched with tape instead of repairs. Although the building, nearly 50 years old, is due for replacement, the budget is unavailable.

Tsukuba University Hospital Director Yuji Hiramatsu explained: "The deficit is about 2.8 billion yen, the largest since the hospital’s founding. The biggest factor is rising personnel costs, up roughly 1.8 billion yen compared to two years ago. In the past, we managed to cover expensive advanced medical care with revenue from other areas, but now expenses across the board are rising, upsetting the overall balance."

The strain extends to emergency care. At a hospital in Sakai City, Osaka Prefecture, doctors stressed the importance of sustaining services despite mounting losses.

Physician Michihiko Kosaka said: "Emergency care is absolutely essential. Recently, more people are stepping away from it, but it is necessary, so as a team we try to transform the effort into the joy of saving patients."

However, with budgets under pressure, even updating medical equipment has become difficult. "Normally machines are replaced every ten years, but in some cases we continue using old ones. Still, we must replace them when possible because precision is directly tied to the quality of care," Kosaka said.

Rising costs are also hitting other areas. The disposal of special medical waste generated when treating infectious patients rose by 6 million yen over the previous year due to higher labor costs at contractors.

To stay afloat, some medical corporations have been offsetting hospital deficits with profits from nursing care businesses within the group, but this is only a temporary solution.

Kyoko Tanaka, administrative director at the Sakai hospital, emphasized: "Even though management is tough, we still maintain staffing to ensure emergency and non-refusal care. For hospitals providing emergency services, finances are extremely severe. As long as we continue such essential care, deficits are inevitable. We strongly hope that medical service fees will be revised so that appropriate compensation is provided for proper medical treatment."

When asked about potential ways forward, Hiramatsu of Tsukuba University Hospital gave a grim assessment: "There really are no options left. We have done everything we can. Some might think if a university hospital goes bankrupt, another hospital can simply take over, but these institutions are crucial social infrastructure for training doctors. Everyone is desperately enduring to continue providing advanced medical care."

Source: YOMIURI

News On Japan
POPULAR NEWS

Japan and the Netherlands played to a 2-2 draw in their opening Group F match of the 2026 FIFA World Cup at Dallas Stadium in Arlington, Texas, on June 14, with the Samurai Blue twice coming from behind to earn a valuable point against one of the tournament's traditional powers.

Prime Minister Sanae Takaichi and British Prime Minister Keir Starmer agreed to strengthen cooperation in economic security, defense and advanced technologies during talks in London on June 14, with the two leaders expected to release a joint document outlining a broad new framework for collaboration ranging from artificial intelligence and semiconductors to critical minerals and energy security.

Police in Kyoto Prefecture are investigating a hit-and-run after a vehicle crashed into the Maizuru office of Liberal Democratic Party Lower House member Taro Honda late on June 13 before the driver fled the scene.

A fire broke out at a Buddhist temple in Obihiro, Hokkaido, on June 13th, sending flames soaring from the building and causing temporary alarm in a nearby residential neighborhood before being largely extinguished about two hours later.

The Japanese government on June 12th released new guidelines calling for women’s toilets to have at least as many fixtures as men’s toilets in public facilities, seeking to address the persistent problem of long queues at women’s restrooms in places such as train stations and event venues.

MEDIA CHANNELS
         

MORE Business NEWS

Japanese stocks rebounded sharply on June 12th, with the Nikkei Stock Average closing back above the 66,000 level for the first time in a week as easing concerns over tensions in the Middle East and a strong rally in U.S. technology shares fueled broad buying of AI-related stocks.

Restructuring is often associated with companies in financial trouble, but a growing number of profitable Japanese corporations are now encouraging employees to take early retirement as part of efforts to reshape their workforces for the future, creating both opportunities and significant risks for workers considering a second career.

Seven-Eleven Japan announced that it will establish a new company with CyberAgent and Dentsu to develop advertising services, using digital signage installed in its stores to deliver targeted advertisements based on real-time conditions.

Domestic gold prices in Japan fell sharply on June 11, with the benchmark retail gold price announced by Tanaka Precious Metal Technologies dropping 906 yen from the previous day to 23,262 yen per gram as of 9:30 a.m., marking the lowest level of the year.

U.S. coffee giant Starbucks is considering selling its Japan business, with Bloomberg reporting that the company has begun preliminary talks with investment banks and that any deal could be worth between 400 billion yen and 500 billion yen.

The Bank of Japan is set to raise its policy interest rate from 0.75% to 1.0% at its monetary policy meeting on June 15th and 16th, a move that could mark another step in the central bank's gradual shift away from ultra-loose monetary policy as inflation remains elevated and the yen continues to weaken.

The contemporary corporate field across Japan is undergoing a profound digital transformation as forward-thinking organizations strive to maintain their market competitiveness in a globalized economy.

Japan's corporate goods prices rose 6.3% in May from a year earlier, marking the fastest pace of increase in more than three years as higher oil and petrochemical costs linked to tensions in the Middle East pushed up wholesale prices.