Battle for survival among Japan hospitals lures health funds

Tokyo

WITH an ageing population that's already the world's oldest, Japan might be a good place to build more hospitals. Instead, it's shutting them down.

More than 300 medical institutions closed or became inactive in the year ended March, the most on record in figures going back to 2006, according to corporate research firm Teikoku Databank. Almost three-quarters of clinics are losing money, a survey by the Japan Hospital Federation shows, and the government is cutting payouts to institutions due to budgetary constraints even as costs remain high, KPMG LLP says.