Dental Clinic Bankruptcies and Closures Reach Record High; Survival Efforts Include New Services Like Strength Training – TV Asahi NEWS

This news highlights the severe business environment for dental clinics, which has manifested in a record number of bankruptcies and closures.

This underscores the reality that not only stagnant medical fee increases but also rising material and utility costs due to inflation, coupled with increased labor expenses, are pressuring the management of particularly smaller clinics.

From the perspective of medical M&A and business succession, the importance of recognizing such "shifts in the tide" early and considering business succession is re-emphasized.

As the news indicates, some dental clinics are seeking survival by exploring unconventional services like strength training guidance, which can be seen as evidence that existing revenue structures are reaching their limits. In business succession, it is crucial not only to consider financial status but also to smoothly transfer intangible assets such as the patient base cultivated by the director, staff employment, and the clinic's role in the community to a new successor.

By collaborating with specialists as soon as signs of management deterioration appear and considering options for business transfer or succession through M&A, the possibility of succession under more favorable terms or liberation from personal debt guarantees increases before falling into insolvency. Continuing medical services through business succession, rather than choosing closure, and maintaining contributions to regional healthcare will likely become a realistic solution for many healthcare institution managers.