Serious Situation: Surging Bankruptcies in Medical Institutions! Around 1,000 Businesses May “Disappear” This Year [Latest Teikoku Databank Survey] – Diamond Online

According to a survey by Teikoku Databank, the number of bankruptcies and liquidations of medical institutions in 2023 reached a record high, with the annual figure approaching 1,000. This highlights the current situation where many medical institutions are facing severe financial pressure due to a combination of factors, including stagnant medical fee increases, rising labor costs, and the need to adapt to medical DX and capital investments.

From the perspective of medical M&A and business succession, this surge in bankruptcies is not merely an issue of poor management but is directly linked to the social challenge of maintaining the healthcare delivery system. The importance of considering business succession as an option at an early stage, before many medical institutions "disappear," is increasing. Particularly, consulting with experts while the institution is still financially sound, or when signs of financial deterioration begin to appear, can be the best strategy to secure a favorable sale price, minimize the impact on staff and patients, and most importantly, ensure the continuity of local healthcare services. This is especially true when considering the release of personal guarantees and contributing to regional healthcare.

Medical institutions facing challenges with management or succession issues should not view this news as "someone else's problem" but rather as an opportunity to calmly analyze their own financial status and future plans. Before falling into insolvency or significant deficits, it is crucial to collaborate with business succession specialists and map out a path toward a better future, including the option of M&A.