Survey on Trends in Medical Institution Bankruptcies, Closures, and Dissolutions (2025): Medical Institution Bankruptcies, Closures, and Dissolutions Reach Record High for Second Consecutive Year – au Web Portal

Revealed in the latest 2025 survey,a record high for the second consecutive yeardemonstrates that medical management has reached the "limits of self-effort." Currently, soaring labor costs and rising prices of medical equipment are increasing fixed management costs, beyond the control of medical fee schedules. This is not merely a failure of individual management, but signifies that small and medium-sized hospitals and clinics, which have supported regional healthcare, are facing structural changes that make their continued existence impossible under the current business model.

In the context of medical M&A and business succession, with bankruptcies and closures rapidly increasing,"establishing an exit strategy early"has become more crucial than ever. If management collapses, not only will the sale price be negligible, but significant debt and employee dismissal issues will become a heavy burden for the individual director. In the current market environment, "partnerships" or "transfers" while still maintaining profitability, orwhile having ample cash reserves,are the realistic options that balance the continuation of regional healthcare with the protection of the manager's assets.

Directors, please monitor not only your institution's cash flow but also the trend in recruitment costs. Considering a third-party succession before debt accumulates is not a defeat, but rather"a decisive action as a manager"to protect the lives of patients and staff. Objectively assessing your institution's market value before it's too late is the first step to avoiding the worst-case scenario.