Japan Hospice Holdings Inc.
7061・Growth Market・Services
Business
Japan Hospice Holdings Inc. operates under the mission of "research and dissemination of home hospice care," providing terminal care for terminal cancer patients and patients with intractable diseases. Through its subsidiary Family Hospice Co., Ltd., the company engages in the Provision of Hospice Housing (serviced housing for the elderly, paid nursing homes, etc.) combined with Visiting Nursing & Home Hospice Services that integrate home-visit nursing, home-visit care, and small-scale multifunctional at-home care. As of the end of FY2025 (ending December 2025), the company operates 59 facilities with 2,024 rooms nationwide, deployed across the Hokkaido, Kanto, Tokai, and Kansai regions. Provision of Hospice Housing accounts for over 90% of net sales. In a super-aging society where the annual number of deaths exceeded 1.6 million in 2024 and is expected to continue increasing through 2040, the company has built a business model that addresses the social challenge of a shortage of places to spend one's final days.
Business Model
Through land-use proposals to landowners, the company opens Hospice Housing facilities averaging around 30 units, earning rental income from residents while also generating medical insurance and long-term care insurance revenue through co-located or nearby visiting nursing and home care offices. Revenue consists of medical treatment fees paid by the National Health Insurance Federations and the Social Insurance Medical Fee Payment Fund, together with co-payments from users. The operating model brings in residents progressively after a facility opens, targeting an occupancy rate of 85% over approximately one year for a 30-unit facility and approximately one and a half years for a 40-unit facility.
Company Strengths
The company employs multiple staff holding qualifications as specialist nurses, certified nurses, and intractable disease nurses, and also has staff with experience working in palliative care wards. It implements comprehensive end-of-life care education programs such as ELNEC-J, providing highly specialized care through a nurse-centered hospice team available 24 hours a day, 365 days a year.
The company expanded from 17 facilities and 524 rooms at the end of FY2020 (ending December 2020) to 59 facilities and 2,024 rooms at the end of FY2025 (ending December 2025). In FY2025 (ending December 2025) alone, it newly opened 11 facilities and 415 rooms (up 25.8% year on year), and revenue grew 2.4-fold over four years, from ¥6,019 million in FY2021 (ending December 2021) to ¥14,169 million in FY2025 (ending December 2025).
The majority of revenue consists of medical insurance, long-term care insurance, and rent income, with major customers being the National Health Insurance Organizations of Kanagawa Prefecture, Aichi Prefecture, and Tokyo. Owing to a revenue structure based on public insurance systems, the company has a stable earnings base that is not readily affected by economic fluctuations.
ENVALITH's Perspective
Performance Trend
Revenue achieved five consecutive years of growth, rising from ¥6,019 million in FY2021 (ending December 2021) to ¥14,169 million in FY2025 (ending December 2025). Meanwhile, operating profit peaked at ¥1,284 million in FY2023 (ending December 2023), was roughly flat at ¥1,287 million in FY2024 (ending December 2024), then fell sharply to ¥849 million in FY2025 (ending December 2025), down 34% year-on-year, marking a steep decline in profitability. In 1Q FY2026 (January-March), revenue rose significantly to ¥3,817 million (up 18.0% year-on-year) and operating profit reached ¥264 million (up 277.4% year-on-year). This sharp expansion in operating profit occurred even as the ¥148 million in subsidy income recorded in the same period a year earlier had almost entirely disappeared, indicating a recovery in the core business's earning power. As an external factor, the decline in average revenue per user continues, but this is being offset by improved occupancy rates driven by enhanced sales efforts. The full-year forecast remains unchanged, with revenue of ¥16,500 million (up 16.5% year-on-year) and operating profit of ¥1,500 million (up 76.7% year-on-year).
Growth Strategy
Accelerating nationwide expansion through continued opening of new facilities and improved occupancy rates
During 1Q FY2026, completed preparations for 7 facilities (254 rooms) scheduled to open from April 2026 onward. Under the operating model in which a hospice team is formed before a facility opens and residents are accepted sequentially after opening, facilities with around 30 rooms aim to reach the target occupancy rate of 85% in approximately one year, while those with around 40 rooms aim to do so in approximately one and a half years.
The organizational structure development that has been ongoing since the previous fiscal period bore fruit in 1Q FY2026, achieving increased revenue and profit through improved occupancy rates. Strengthening of the sales function has directly contributed to acquiring residents, supporting improved profitability at existing facilities.
In parallel with improving occupancy rates in existing areas, the company is promoting expansion into regions where it has not yet established a presence. Against the backdrop of an increasing number of deaths driven by an aging population (a market environment in which annual deaths exceeded 1.6 million in 2024, with further increases projected through 2040), the company aims to capture nationwide demand for terminal care.
Last updated: July 17, 2026