Bankruptcies among medical and nursing care providers in Japan reached 478 in fiscal 2025, marking the highest level since 1988, Tokyo Shoko Research said on Monday [1].

The research firm’s analysis covered hospitals, clinics, dental offices, quarantine centers, nursing care providers, and disability welfare service operators that went bankrupt with debts exceeding ¥10 million (about $63,800) [1].

Tokyo Shoko Research attributed the surge mostly to a shortage of staff and rising operational costs. These financial pressures have intensified as the government largely regulates the prices medical and nursing care providers can charge for their services, limiting their ability to raise fees to cover expenses [1].

The report highlights the scale of distress across a broad range of medical and care services, affecting both healthcare facilities and welfare providers [1]. The last time bankruptcy levels approached this high was in 1988, underscoring the severity of current challenges [1].

Tokyo Shoko Research’s report was released on Monday, providing the most recent data on financial struggles within the country’s healthcare and nursing sectors [1].