Japan care providers demand higher compensation to address labor shortages

During a Social Security Council meeting on September 10, various stakeholder groups expressed urgent concerns regarding the sustainability of home-based long-term care services in Japan ahead of the next fiscal year's compensation revisions.

Representatives from several organizations, including the National Federation of Care Service Providers and the Japan Home Helper Association, called for significant increases in basic compensation to combat rising costs, inflation, and severe labor shortages. Specifically, home-help providers reported that approximately 60% of facilities are operating at a deficit, with 80% struggling to secure sufficient staff.

The National Council of Community Comprehensive Support Centers highlighted a systemic contradiction: as the government encourages other providers to take over preventive care tasks to allow centers to focus on community building, the centers' ability to fund wage improvements through preventive care bonuses decreases.

Other key requests included: • Reevaluating the transition of users with low care needs (Levels 1 and 2) to integrated community support programs to prevent service disparities. • Addressing the discrepancy between reported average profits and the actual financial struggles of smaller or rural providers. • Simplifying complex wage improvement bonus systems to ensure funds reach frontline workers effectively. • Adjusting service limits for small-scale multifunctional home care to accommodate combined services like nursing and equipment rental.