2025 Hospital & Clinic Bankruptcies Reach 41: Mid

News Highlights

A survey by Tokyo Shoko Research reveals that 41 hospitals and clinics filed for bankruptcy in 2025, with a notable increase in mid-sized medical institutions. The underlying causes cited include an imbalance between rising costs due to labor expenses and inflation, and income from medical fee revisions. If management improvements are not addressed promptly, worsening financial conditions such as a decline in the current ratio and consecutive years of operating losses are progressing, leading to an increasing number of cases where lack of successors and management difficulties become severe.

M&A Medical Editorial Department’s Perspective

The report from Tokyo Shoko Research, stating that hospital and clinic bankruptcies reached 41 in 2025, with a particular increase in mid-sized hospitals, once again highlights the harsh realities of medical institution management. The structural challenge of a “cost-inflationary” environment, where rising labor and material costs continue unabated while medical fees see only marginal increases, is impacting many medical institutions regardless of size. In this situation, the ability to consider options such as business succession or M&A early on, before deteriorating financial conditions become apparent, is key to maintaining regional healthcare and protecting the employment of patients and staff. Specifically, negotiating the release of personal guarantees from management is only possible while the financial foundation is still sound; missing the opportune moment will narrow the available options.

Key Issues Highlighted by This News

• The increase in bankruptcies of mid-sized hospitals is evidence that the imbalance between rising costs and medical fees is pressuring management, regardless of scale.
• The figure of 41 bankruptcies in 2025 cannot ignore the impact of the end of COVID-19 support measures.
• A worsening current ratio and consecutive years of operating losses are clear signals that business succession through M&A should be urgently considered.
• Negotiating the release of personal guarantees is more likely to succeed if conducted through experts before management collapses.

Practical Questions Arising from This News

• For how long, specifically, does a period of operating losses make M&A negotiations difficult?
• What happens to the healthcare provision system in a region if a mid-sized hospital goes bankrupt?
• If there are no successor candidates, what options are available besides M&A?

If You Feel “Should I Consult?”

If your institution is experiencing situations such as “rising costs due to labor expenses and inflation are pressuring management,” “operating profits have been low for consecutive periods,” or “there is anxiety about the future due to a lack of successors,” we recommend consulting with experts in business succession and M&A at an early stage to avoid the worst-case scenario of bankruptcy. Consulting while your institution is still sound will broaden your options for more favorable terms, such as negotiating the release of personal guarantees or succession that continues the employment of patients and staff.

M&A Medical (CentralMedience Inc.) supports the business succession of medical corporations, hospitals, and clinics as a Small and Medium Enterprise Agency-certified M&A support institution, on a full success fee basis. Consultations are handled with strict confidentiality. Free consultations here