Medical Institution Closures and Suspensions Reach Record High; “Doctorless Areas” May Increase Due to Physician Shortage, But What’s Key to Protecting Regional Healthcare? A Clinic Physician, Serving Approx. 44% of Local Residents, Offers Recommendations – PR TIMES

News Highlights

Closures and suspensions of medical institutions in 2024 have reached a record high, raising concerns about the increase in “doctorless areas” due to physician shortages. A physician from a clinic serving approximately 44% of local residents has made recommendations to protect regional healthcare. The news compares closure costs (millions of yen) with business succession compensation (0.5 to 1.5 times annual sales), indicating that the succession period for clinics without beds is typically 4 to 10 months. Early consultation suggests the possibility of simultaneously ensuring continued employment for staff and ongoing patient care.

M&A Medical Editorial Department’s Perspective

The record number of medical institution closures and suspensions is not merely a statistical issue. It highlights the reality that small and medium-sized clinics, which have been supporting regional healthcare, are facing existential crises due to the structural challenge of physician shortages. The fact that a physician from a clinic serving about 44% of the local population is making recommendations stems from a sense of urgency regarding the serious impact that clinic closures have on the medical access of local residents. The benchmark for business succession compensation, ranging from 0.5 to 1.5 times annual sales, and the succession period of 4 to 10 months for clinics without beds suggest that M&A can be a realistic option for business continuity. The crucial point is to seek consultation with experts early on, before reaching a situation where closure seems like the only option, and to find a path that allows regional healthcare to continue to shine while minimizing the impact on staff and patients.

Key Discussion Points from This News

• The record number of closures and suspensions indicates a situation where physician shortages are undermining the foundation of regional healthcare.
• Recommendations from a clinic physician serving approximately 44% of local residents reflect a strong sense of crisis regarding the maintenance of regional healthcare.
• The comparison between closure costs and business succession compensation suggests that M&A is a realistic option.
• The estimated succession period for clinics without beds (4-10 months) indicates the possibility of planned business succession.

Practical Questions Arising from This News

• If closure is chosen, how will re-employment support for staff be provided?
• What support measures will the government implement if doctorless areas increase?
• What specific recommendations are clinic physicians making to protect regional healthcare?

If You’re Thinking “Should I Consult Too?”

If you are a business owner who feels concerned about the future of your clinic after reading the news about the record number of closures and suspensions, please first recognize that options other than “closure” exist. Business succession is a powerful means to continue contributing to the region, such as by maintaining staff employment and patient care, while also planning for your post-retirement life. Consultation with experts is often free, and we recommend starting by gathering information and discussing the possibilities of business succession.

M&A Medical (CentralMedience Inc.), as an M&A support institution certified by the Small and Medium Enterprise Agency, provides full success fee-based support for the business succession of medical corporations, hospitals, and clinics. Consultations are kept strictly confidential. Free consultation here