Long-term care insurance and market for aged care in Japan: focusing on the status of care service providers by locality and organisational nature based on survey results

Abstract

Aim: The purpose of this paper is to examine the status of care service providers by locality and organisational nature.

Method: Questionnaires were sent to 9505 home-based care service providers registered in the databases of 17 prefectures. The prefectures were selected according to population size.

Results: Numerous for-profit providers have newly entered the aged care service market and are operating selectively in Tokyo, a typical example of a metropolitan area. Furthermore, both for-profit and non-profit providers have suffered from a shortage of care workers and difficult management conditions, which tend to be more pronounced in Tokyo.

Conclusion: The market under long-term care insurance was successful in terms of the volume of services, but most providers were sceptical as to whether competition in the market could facilitate quality care services.

Keywords: health-care market; health-care providers; health-care sectors; home care service; long-term care insurance.