Jim Verbeeten, a partner with Bain & Company's Tokyo office, said the Japanese government realizes the country lacks a sufficient capacity of nursing homes and senior-care facilities. For the past five years, the government has worked to incentivize the private sector to take on the task of building nursing homes and other such health-care facilities. To attract this kind of development, the government has provided subsidies for the construction costs of new facilities as well as discounts on property taxes, he said.