Approximately 14% of Hospitals Face Insolvency, 60% Report Operating Deficits; Profit Gap with Clinics Widens, Average Operating Profit Margin Negative for Second Consecutive Year – PR TIMES

Hospital Management's14% in Excess Liabilities, 60% Operating DeficitThese shocking figures indicate that this is no longer a temporary downturn but a sign that the hospital business model itself is facing structural collapse. Particularly noteworthy is the "profit gap with clinics." While agile clinics maintain profitability, hospitals are rapidly losing financial strength due to heavy fixed costs, personnel expenses, and the inability to absorb rising prices with medical fees.

From an M&A perspective in the medical field, this "negative growth for two consecutive years" signifies a dramatic change in the M&A environment. Hospitals falling into excess liabilities will struggle to find buyers through conventional business succession schemes and may be forced into succession based on "legal restructuring" involving civil rehabilitation or specific conciliation.Consider M&A while Net Assets are Still PositiveThis is the only path to securing founder's profits and releasing personal guarantees. For the 60% of hospitals where operating deficits are the norm, the present moment may be the last chance to plan an "exit strategy."

For managers struggling with a lack of successors, before their institution crosses the "14%" deadline, rather than improving operating profit,"Capital Logic" Restructuring, in other words, participation in a large medical group, should be seriously considered. To maintain regional healthcare, a decision is needed to stabilize the financial base by utilizing external capital, rather than clinging to independent management.