Japan’s long-term care insurers face pressure from staff shortage

55.2% of home care operators reported a year-on-year revenue decline.

A nationwide shortage of home care workers in Japan is reducing insured individuals’ access to services and driving revenue losses for providers, according to a recent survey by the Nippon Careservice Craft Union (NCCU). 

The union says the crisis is putting increasing strain on the long-term care insurance system, as reported Japan Times.

The NCCU survey, conducted from April 14 to 21, gathered responses from 1,066 participants, including care business operators and managers. 

It found that 89.4% of facility managers had declined service requests since April 2024 due to insufficient staffing. 

As a result, 55.2% of home care operators reported a year-on-year revenue decline, with 73.3% attributing the drop to an inability to meet demand.

The shortage is also disrupting care planning. About 68.3% of care managers said they were unable to develop proper care plans due to a lack of available personnel. 

In some cases, families were forced to step in to fill gaps, whilst 19.3% of care managers reported no alternative support for clients left without care.

The union is calling for a mid-year reversal of the 2024 home visit fee cut and for emergency subsidies to support care providers. 

It is also urging immediate reforms to wages and working conditions to address worker retention and recruitment challenges.