Key Points of Japan’s 2026 Law Reform: Registration of Private Nursing Homes and What Placement Agencies Must Do
In June 2026, Japan enacted the Act Partially Amending the Social Welfare Act and Other Acts (enacted on June 19 and promulgated on June 25). For private nursing homes (yūryō rōjin hōmu), which have become a widespread housing option for older people, and for the placement agencies that broker admissions to them, the law marks a major shift from voluntary rules to a system based on law.
Main steps leading to the amendment
October 2020: An industry federation of senior housing operators’ associations began operating a notification and publication system for senior housing placement agencies
December 2024: Following media reports of high referral fees and other issues, the government’s standard guidance guidelines and the industry’s code of conduct were revised
November 2025: A government study group compiled its conclusions (a registration system, written explanations before contracts, a certification system for placement agencies and more)
June 2026: The amended law was enacted and promulgated
Point 1: A registration system for private nursing homes
A system of registration with prefectures and equivalent authorities will be introduced for private nursing homes that accept people with moderate to severe care needs, people who need medical care, people with dementia and others. Because it also covers homes that say residents can stay on even when their care needs become moderate to severe, many existing homes are expected to be covered.
To register, homes will be required to use written residence contracts, to avoid attaching the “unfair conditions” specified by ministerial ordinance, to establish important matters concerning their operations, and to meet the staffing, facility and operating standards set by prefectural ordinance, among other requirements. The law will take effect on a date set by cabinet order within two years of promulgation, and existing homes are given a transitional period of up to one year and six months from the effective date.
In addition, rules on the treatment and safety of residents and on confidentiality are to be set by ministerial ordinance, including for homes not subject to registration, and homes are also expected to be required to explain important matters in writing and hand over the document before a contract is signed.
Point 2: Measures against “enclosure” (steering residents to affiliated services)
Residential-type homes subject to registration will be prohibited from making the use of a particular care service provider a condition of residence. The following are given as examples of “unfair conditions”:
Making the use of an on-site or affiliated care provider a condition of residence
Offering lower rent only to residents who use affiliated services
Forcing residents to change their family doctor or care manager
Alongside this, a new form of consultation support (registered facility care support) will be created, in which care planning and consultation about life in the community are handled together by a provider that stands on an equal footing with the home (to take effect within three years of promulgation).
Point 3: The legal status of placement agencies and a certification system
The amended Act on Social Welfare for the Elderly now defines “providers of information on admission to private nursing homes.” In addition, a certification system for high-quality agencies, under which the private nursing home association certifies and publishes placement agencies that meet set standards, is scheduled to begin in fiscal 2027 (notification under the industry’s notification and publication system is a prerequisite).
As for referral fees, the government’s guidance guidelines and the industry’s code of conduct state that it is appropriate to calculate them based on monthly housing costs such as rent and management fees, and inappropriate to vary fees according to the person’s care level or medical needs.
What families considering a move should check
Whether you were told that the adviser is a placement agency and that it receives fees from the residence
Whether you were shown several options that meet your conditions, with the pros and cons of each
Whether information on vacancies, costs and medical support comes with the date it was confirmed
Whether you received the Explanation of Important Matters before signing and were able to check the conditions for moving out and the breakdown of costs
Placement services will need more transparency and quality than ever
With this amendment, placement agencies are also expected to support older people’s decision-making and protect their rights. The details to be set by cabinet and ministerial ordinances will become clear in the future, but a consultant’s basic stance, “to provide accurate information and options from a neutral position,” will not change. Our Training Textbook for Care Facility Placement Consultants (2026 Edition), available in Japanese, explains the amended law and the standards of conduct to follow in everyday consultations in detail.
This article is based on information as of October 2026. Effective dates and details will be set by future cabinet and ministerial ordinances and other rules, so please check the latest information.
This is an English translation of a column originally published in Japanese by Next Co., Ltd.
About Next Co., Ltd. We support companies in Japan’s senior care and end-of-life planning (shukatsu) market through research, business development and training. Our English textbook, Senior End-of-Life Planning Textbook, explains the market from the big picture down to day-to-day practice, including senior housing and care facility placement consulting. See the English edition | Buy on Gumroad | Contact us
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