“Local Clinics Closing One After Another” Medical Collapse Begins… Doctors Also “Feel the Crisis of Local Healthcare Collapsing” (Page 3) – Daily Shincho

News Highlights

Daily Shincho reports that local clinics are closing one after another, and the crisis of medical collapse is becoming a reality. Doctors are also feeling the collapse of local healthcare. The news suggests that while closing a clinic incurs costs of several million yen, the benchmark for business succession is 0.5 to 1.5 times the annual sales, and that the succession of clinics without beds is often completed in 4 to 10 months. It is stated that consulting before closing allows for both the continuation of staff employment and patient care.

M&A Medical Editorial Department’s Perspective

The headline “Local Clinics Closing One After Another” highlights a structural problem that shakes the foundation of the healthcare delivery system, rather than just a series of individual closure cases. In particular, the fact that closing costs can reach several million yen, while business succession can be established for a price of 0.5 to 1.5 times annual sales, suggests how inefficient the option of closing down is. The succession period of 4 to 10 months for clinics without beds aligns with the practical experience in M&A brokerage, indicating that with proper preparation, it can be an effective means to prevent the creation of healthcare voids in local communities due to closures. The key is the perspective of “consulting before closing” to minimize the impact on staff and patients. This suggests the possibility of achieving the highly public mission of continuing local healthcare through M&A, rather than merely selling a business.

Points Raised by This News

• The comparison between closure costs (several million yen) and business succession value (0.5 to 1.5 times annual sales) suggests the economic irrationality of choosing closure.
• The benchmark of 4 to 10 months for the succession of clinics without beds indicates the feasibility of planned business succession.
• “Consulting before closing” is key to balancing the continuation of staff employment and patient care.
• From the perspective of maintaining local healthcare, clinic business succession may hold more significance than a simple M&A.

Practical Questions Arising from This News

• I am considering closing my clinic, but what are the specific costs involved?
• Based on my clinic’s annual sales, what kind of value can I expect from business succession?
• What are the concrete steps to smoothly proceed with business succession without causing trouble for staff or patients?

If You Feel “Should I Consult Too?”

If you have read the news “Local Clinics Closing One After Another” and feel concerned about the future of your own clinic, please first consult with an expert about the possibility of business succession. Closing a clinic not only incurs costs of several million yen but also risks losing the aspect of contributing to local healthcare. Through business succession, you may be able to protect important elements for the community, such as staff employment and the continuation of patient care, while also receiving economic compensation. We recommend gathering information early, using the benchmark period of 4 to 10 months as a reference.

M&A Medical (CentralMedience Inc.) supports the business succession of medical corporations, hospitals, and clinics on a completely success-fee basis as a certified M&A support institution by the Small and Medium Enterprise Agency. We handle consultations with strict confidentiality. Free consultations here