This article comprehensively compares the options facing hospital, medical corporation, and clinic managers: “Third-Party Succession M&A,” “Clinic Closure,” and “Business Dissolution,” examining their impact on net proceeds, taxation, staff, patients, and regional healthcare.

Comprehensive Comparison of the Three Options

Reasons Why Succession (M&A) is Overwhelmingly Advantageous

1. Net Proceeds Differ by Tens to Hundreds of Millions of Yen

For the transfer of a clinic without beds, the sale proceeds are typically 0.5 to 1.5 times the annual revenue. For a clinic with an annual revenue of 100 million yen, this secures 50 to 150 million yen. Closure or dissolution yields zero proceeds, and additionally incurs costs of millions of yen for restoration, severance pay, and disposal, creating a vast difference.

2. Protects Staff Livelihoods

Long-serving nurses and staff can be protected from unemployment. Employment continuation is a mandatory condition for the transfer and is explicitly stated in the final agreement. Maintaining salaries and benefits at or above pre-transfer levels is the industry standard.

3. Safeguards Patients’ Access to Care

Sudden closure poses significant disadvantages for patients with chronic conditions or ongoing treatment. Succession allows for the continuation of medical services at the same location with the same staff, passing on the trust of regional healthcare to the next generation.

4. Director’s Personal Guarantees Can Be Negotiated for Release

Depending on the succession structure, the release of the director’s personal guarantees can be included as a condition of the transfer. In cases of closure, the risk of personal liability for guarantee obligations remains with the director.

To Those Who Believe “Closure is the Only Option”

Many directors mistakenly believe that their small clinic will not attract buyers. However, in reality, most small clinics, even in rural areas, can find a buyer.

• Medical corporation groups looking to strengthen regional healthcare collaboration
• Young doctors considering new practice openings
• Regional collaboration organizations undergoing business expansion
• Other clinics aiming to expand their service specialties

Numerous potential buyers exist nationwide, and our physician network and medical corporation list can facilitate matching. Please consult with us before making a decision to close.