Xinhua News Agency reported from Tokyo, Japan on October 1 that 2025 officially indicated that more than 80% of hospitals in Japan experienced funding shortfalls in fiscal year 2024.
The Japanese Ministry of Internal Affairs released a report stating that about 83.3% of public hospitals in the country experienced funding shortfalls totaling 395 billion yen in fiscal year 2024.
The proportion of hospitals experiencing funding shortfalls and the value of investment shortfalls are both historically high.
Meanwhile, rising labor costs, as well as the price of drugs and other products, are factors that have led hospitals across Japan to face a serious financial situation.
The financial situation of Japan’s public hospitals was in a surplus of 325 billion yen in fiscal year 2021 due to the government’s subsidy program during the COVID-19 pandemic.
Before facing a worsening financial problem from fiscal year 2023 as labor and equipment costs increased more than revenue from medical services./
