Insolvencies of Medical Institutions in Kyushu and Okinawa – Kyushu Medical Institutions on Pace for Record Insolvencies; Rising Prices, Stagnant Medical Fees… – Photo/Image (1/1) – Nishinippon Shimbun ME

News Highlights

On October 29, 2025, Nishinippon Shimbun ME reported that medical institutions in the Kyushu and Okinawa regions are on track to reach a record pace of insolvencies. The background to this situation is that rising prices cannot be sufficiently covered by medical fee revisions, and it is analyzed that small-scale medical institutions, particularly in rural areas, are facing financial difficulties. The news suggests the importance of early consultation with experts, negotiation for the release of personal guarantees, and business succession for the maintenance of regional healthcare.

M&A Medical Editorial Department’s Perspective

While focusing on the specific region of Kyushu and Okinawa, the report by Nishinippon Shimbun ME highlights structural challenges faced by medical institutions nationwide. In particular, the statement “Rising prices, stagnant medical fees” succinctly illustrates the reality that the gap between recent inflation rates and medical fee revision rates is squeezing the profitability of medical institutions. For example, rising labor costs, drug prices, and material costs cannot be absorbed solely by medical fees, which tend to be fixed. Consequently, the deterioration of operating profit margins is likely becoming severe, especially for small and medium-sized hospitals and clinics that bear the responsibility for regional healthcare. Under these circumstances, considering M&A as an option before financial difficulties become apparent, or before personal guarantees push practitioners to the brink, can be seen as the only way to achieve both the preservation of practitioners’ assets and the continuation of regional healthcare.

Points Raised by This News

• The accelerating pace of medical institution insolvencies in the Kyushu and Okinawa regions suggests a crisis awareness regarding the maintenance of regional healthcare.
• Contrary to the stagnation of medical fees, rising prices are significantly worsening the profitability of medical institutions.
• It is important to consider M&A at a healthy stage before personal guarantees push practitioners to the brink.
• Business succession, which involves taking over patient bases and staff employment, is an indispensable option for the continuation of regional healthcare.

Practical Questions Arising from This News

• After how long a period of consecutive operating losses do M&A options become limited?
• Under what conditions can negotiation for the release of personal guarantees be possible, with what degree of expected business improvement?
• When business succession is chosen over closure, how is the contribution to the region evaluated?

If You Feel “Should I Consult Too?”

If your institution’s operating profit margin has been on a downward trend for several consecutive years, or if you feel that rising costs due to inflation cannot be covered by medical fees, please consult with an expert. Especially if the personal joint guarantee of the practitioner is becoming a burden, early consideration of M&A may be the best way to protect your assets while continuing to contribute to regional healthcare.

M&A Medical (CentralMedience Inc.) is an M&A support institution certified by the Small and Medium Enterprise Agency, supporting the business succession of medical corporations, hospitals, and clinics on a full success fee basis. Consultations are accepted with strict confidentiality. Free consultation here