Surge in Bankruptcies of Hospitals and Nursing Care Providers = Looking Back at 2025 (7) – Tokyo Shoko Research

According to reports from Tokyo Shoko Research, bankruptcies of hospitals and nursing care providers are rapidly increasing in 2025. This can be attributed to a combination of structural challenges, including squeezed profits due to medical fee revisions, soaring labor costs, and the burden of investment in aging facilities.

From the perspective of medical M&A and business succession, this "surge in bankruptcies" strongly suggests that the optimal timing for considering business succession for many healthcare institution managers is "before a crisis becomes apparent."

Specifically, when consultations occur after a business is on the verge of bankruptcy, such as falling into excess liabilities, securing a sale price, as well as maintaining staff employment and finding recipients for patients, become difficult due to more complex condition negotiations. However, by consulting with specialists (M&A intermediaries or consultants) at an early stage, when "signs of management deterioration" such as declining medical profit margins or worsening current ratios are observed, it becomes possible to negotiate with multiple potential successors, making business succession under more favorable terms, or options like the release from personal guarantees, more realistic.

Managers and directors of medical institutions facing succession issues or future management concerns should view this news as a critical alert to "objectively reassess their institution's current situation and consult with specialists early on." To avoid the worst-case scenario of closure and continue contributing to regional healthcare, considering business succession as an option at an earlier stage and proactively is essential.