A medical corporation accepting COVID-19 patients at its hospital in Osaka has applied for bankruptcy protection with the Osaka District Court, according to Teikoku Databank Ltd.
The corporation, called Yuaikai, which had debts of ¥5.2 billion, filed for protection under the civil rehabilitation law Thursday.
The corporation, based in Osaka, suffered a deterioration in business conditions as its outpatients decreased after its hospital began accepting COVID-19 patients.
According to Teikoku Databank, the hospital was the first among those admitting coronavirus patients to go bankrupt in Japan.
The corporation’s Matsumoto Hospital in Osaka opened in 1938.
Yuaikai’s financial conditions deteriorated mainly due to a heavy investment to build a new hospital ward.