Survey on Trends in Bankruptcies, Closures, and Dissolutions of Medical Institutions (2025) – tdb.co.jp

News Highlights

The 2025 survey on bankruptcies, closures, and dissolutions of medical institutions indicates that a deteriorating current ratio and consecutive years of operating losses in medical practice profitability highlight the importance of early consultation for business succession. In particular, proceeding with M&A while the business is still in sound financial health creates opportunities for negotiating the release of the clinic director’s personal joint liability. Choosing business succession over closure is essential for passing on the patient base and staff employment to the next generation and continuing contributions to regional healthcare.

M&A Medical Editorial Department’s Perspective

The “deteriorating current ratio” and “consecutive years of operating losses in medical practice profitability” indicated by the 2025 trend survey from Teikoku Databank are not merely worsening management indicators but concretely suggest a time limit for business succession that medical institutions face. Especially in individually managed clinics, the clinic director’s personal joint liability can become a burden on management, often complicating M&A negotiations when there is no successor. However, this survey result underscores the importance of consulting with experts (M&A intermediaries, tax accountants, etc.) before problems become apparent, for instance, when signs such as “the current ratio falls below 150%” or “medical practice profitability is negative for two consecutive periods” are observed. Early consultation enables the construction of a business succession scheme under more favorable terms, including the release of the clinic director’s personal guarantee, which also leads to the continuation of regional healthcare.

Key Issues Highlighted by This News

• A deteriorating current ratio and consecutive years of operating losses in medical practice profitability are concrete management indicators that signal a time limit for business succession.
• M&A conducted during a period of sound financial health is key to favorably advancing negotiations for the release of the clinic director’s personal joint liability.
• Choosing business succession over closure enables the maintenance of the patient base and staff employment, and contributes to regional healthcare.
• The survey results emphasize the strategic importance of identifying early signs of deteriorating management indicators and consulting with experts.

Practical Questions Arising from This News

• If the current ratio falls below 150%, what specific M&A schemes can be considered?
• Under what level of business conditions does the possibility of releasing the clinic director’s personal joint liability increase?
• If prioritizing contributions to regional healthcare, are there business continuation measures other than M&A?

If You Feel “Should I Consult Too?”

If your clinic’s current ratio is below 150%, or if medical practice profitability has been in the red for two consecutive periods, or if there are signs of this occurring, it is a signal to consult with experts before your business succession options narrow. Particularly if the clinic director’s personal joint liability is a burden, considering M&A while the business is still sound can lead to a smooth succession, including the release of the guarantee. To protect the future of your patients and staff, let’s explore the best path through early consultation.

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. We handle consultations with strict confidentiality. Free consultations are available here.