Long-term Care Prevention Project
Utilising Social Impact Bonds(Reference: Project Name): Toyota City
Public-Private Partnership for Longterm Care Prevention “ZUTTO GENKI!
PROJECT”

Toyota City

Background and Reasons for Deciding to Undertake
the Project

Project Aims

Toyota City has signed a memorandum ofThis project aims to reduce the cost of long-term

understanding with Dream Incubator Inc. regarding

care insurance services by 1 billion yen as well as

the implementation of surveys and research in

improve the QOL of elderly residents by enabling

preparation

them to acquire a “new purpose for living” orforusingSocial

ImpactBonds(hereinafter referred to as “SIBs”) (February 2020).

“enjoyment”.

The city is drawing up plans for resolving social
problems, including SDGs, and has been considering

Project Outline

using SIBs to realise these aims in various fields.

This innovative social problem-solving project

Toyota City has been focusing efforts onaddressing

theso-called“2025utilises SIB mechanisms—which use private funds.

Problem”—

Under this system, the anticipated reduction in

Babyboomers1 entering the late stages of old age.

social costs generated in the future is used as capitalDue to the impact of the COVID-19 virus, however,for anticipatory investments, reducing long-term

opportunities for elderly residents to go out havecare risks, and thereby maintaining elderly residents’decreased and there are mounting concerns about

health and reducing administrative costs.

“corona frailty” (a state in which elderly people lose

Specifically, based on evidence that social

physical and mental strength due to locking

participation and communication reduce long-termthemselves away at home, increasing their risk forcare risks, we will develop various private sector

needing long-term care). It was therefore decided toideas as services.

use SIBs in measures for preventing the need for

In addition, Toyota City will realise wise spending

long-term care.
Also,

fromby using a performance-based compensation system
themunicipal

government’sfor paying the private sector.

perspective, it has become necessary for many

Project period: July 2021 – June 2026 (5 years)

human resources to be diverted to COVID-19

Project cost: 500 million yen maximum

countermeasures.

Participants: 5,000 people/year (total of 25,000

Consequently, since the current circumstances dopeople over 5 years) are anticipated.

not allow for dedicating municipal staff to addressing
the problem of the increased risk for long-term care,
Toyota City decided to work in cooperation with theprivate sector to develop a large-scale long-term careprevention project.
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Scene at a project experience meeting
SIB project scheme
Results of the Project
Project Features and Innovation

The programmes provided under the project have

SIBs are being introduced, mainly in Europe andbeen devised by private sector organisations with

the United States, in employment support, homelessoriginality and ingenuity in regard to providing bothsupport, healthcare, and other fields for which

online activities and offline activities avoiding theresults indicators can easily be created. Virtually all“Three Cs”. Measures to prevent the spread ofthese fields address problems that are occurring now.

infection are being implemented thoroughly andBecause of the difficulty in setting indicators, there

services encouraging continued social participation

are very few case examples of SIBs being used toare being provided.

address the world’s common future problem of long-Furthermore, a wide array of programmes areterm care prevention.

provided, not only in fields such as exercise and otherThe challenge is to change society so that “there isactivities that spring to mind when imagining

no need for long-term care to begin with” rather than

measures to prevent long-term care in the future,“responding after a person enters long-term care”.

but also hobbies, employment, entertainment, andFurthermore, the project is structured so that theother fields that generate communication. The

risk of providing compensation for the project isproject is both providing elderly residents with adivided among and borne by financial institutions

range of options to choose from and encouraging

and the companies implementing the project.

their continued social participation.

Another reason why this project can be called
innovative is that the content of the project has been
evaluated by certain companies and project funding
has been donated to Toyota City.

Programmes provided through the project2

Issues and Responses

This project is being carried out over a 5-year

An issue for the project is that because SIBs are theperiod beginning in July 2021 and is a long-term,

payment mechanism for paying compensation inlarge-scale undertaking with project costs runningaccordance

into hundreds of million yen.

withprogramme

results,evaluation/verification for measuring the results are

Toyota City was able to implement such a long-very important, and participant data necessary for

term, large-scale undertaking through corporate

performing evaluation/verification needs to bedonations to fund the project.

acquired appropriately.

In order to also fulfil donors’ expectations, thoughWith regard to the long-term care prevention

further collaboration with the private sector Toyota

results of social participation, because statistical data

City will endeavour to ensure that this project grows

already shows a strong correlation between social

to become a model case example that can beparticipation and long-term care prevention, it isimplemented in other municipalities and have a

possible to evaluate/verify these results using asocial impact.

scientific approach, and there is thought to be a highIn addition, Toyota City will consider the possibility

probability of results being achieved.

of applying SIBs to other social problems with theAccordingly, short-term and long-term results
weresetasfollows,

anddata

aim of creating a sustainable society.

forevaluation/verification is being obtained throughperformance reports by private sector organisations

Reference URLs

and regular implementation of questionnaires.

Toyota City official website:

Short-term results: the number of people

https://www.city.toyota.aichi.jp/kurashi/fukushi/ko

participating in the project and number of peopleureisha/1044582.html

maintaining their participation for six months orDream Incubator Inc. official website:longer

https://www.dreamincubator.co.jp/nextrisesia/?s2*Settings made based on research results indicatingthat social participation decreases long-term careContactcosts per person by 19%.

Division in Charge: Planning Department, Advanced[Source: JAGES (Japan Gerontological Evaluation

City Promotion DivisionStudy) survey]

Phone: ＋81-565-34-6982
E-mail: hybrid-city@city.toyota.aichi.jp

Long-term results: the difference in risk for longterm care and difference in long-term care costs
between project participants and non-participants

Key Terms

before the project began and after the project

1Baby boomers: The generation born between 1947

finishes.

and 1949. Refers to people born during Japan’s*Create scores for the risk of elderly residents

first baby boom, who as of 2021 comprise a large

needing long-term care within 3 years and measure

percentage of the population aged 65 years andthe difference in scores between project participants

older.

and non-participants to obtain results.
Future Developments (Anticipated Results, Outlook
for the Project, Issues, etc.)
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