Japan, Where 1 in 3 Are Elderly, Faces Clinic Disappearance Crisis: Hospital and Clinic Closures Hit Record High in 2023 – Toyo Keizai Online

The fact that the number of bankruptcies, suspensions, and closures of hospitals and clinics reacheda record high in 2023indicates that the medical industry is facing a structural paradox where "patient demand exists, but operations cannot be sustained." Particularly in a super-aged society where "one in three people are elderly," the disappearance of regional medical care facilities signifies the collapse of regional infrastructure beyond the failure of individual corporations. The background includes the start of repayment for zero-interest loans, rising prices, and increased labor costs associated with the "2024 Problem," which are directly impacting medical operations governed by fixed prices.

From a medical M&A perspective, this "record high" figure suggests thatthe success or failure of an "exit strategy before it's too late"is at a critical juncture. If consultations are sought after operations have severely deteriorated, not only is securing a sale price difficult, but finding a successor may become impossible. However, with patient demand currently high, an early third-party succession is an extremely public-spirited strategy that connects the greatest asset, the "existing patient base," to the next generation.

Clinic directors facing a lack of successors should concretize their options for continuation while their clinic is still"an indispensable rare resource for the region."Strategic succession, rather than "continuation by elimination" after competitors have closed, is the only path to protect both retirement funds and regional healthcare.