Survey on Trends in Bankruptcies, Closures, and Dissolutions of Medical Institutions (2024) – tdb.co.jp

The 2024 Survey on Trends in Bankruptcies, Closures, and Dissolutions of Medical Institutions, released by Tokyo Shoko Research,underscores the persistently challenging business environment. A combination of factors, including stagnant revenue growth due to medical fee revisions, soaring labor costs, and the financial burden of investing in advanced medical equipment, is particularly pressuring small and medium-sized medical institutions.

From the perspective of medical M&A and business succession, these survey results re-emphasize the importance of "early consultation." Many medical institution executives consult only after their business has deteriorated or after deciding to close. However, once an institution becomes insolvent or experiences sustained significant revenue decline, securing a favorable sale price becomes difficult, narrowing the options for business succession through M&A. In particular, negotiating the release from personal guarantees is only feasible when the business is still financially sound.

For medical institution executives facing succession issues, a key insight is the "early detection of warning signs." For example, it is crucial to monitor fluctuations in financial indicators such as a deteriorating current ratio or consecutive years of operating losses in medical practice income, and to promptly consult with experts if any anomalies are detected. Furthermore, it should be understood that M&A is not merely a "sale" but strongly represents "business succession," connecting the continuation of regional healthcare, the preservation of staff employment, and patient services to the next generation.M&A conducted during a financially healthy period not only facilitates favorable negotiations for the release of the clinic director's personal guarantees but also enables a smooth retirement that contributes to regional healthcare.