[Photos] Patient numbers plummet, doctors age… Consecutive clinic closures raise concerns about the collapse of regional healthcare in Kagoshima, with 123 clinics closing in 10 years – Minami Nihon Shimbun

News Highlights

Clinic closures by private practitioners are occurring one after another in Kagoshima Prefecture, with 123 clinics having closed over the past 10 years. The primary factors are a decrease in patient numbers and the aging of physicians, raising concerns about the sustainability of regional healthcare. While closing a clinic can cost several million yen, business succession can yield compensation ranging from 0.5 to 1.5 times the annual sales. For clinics without inpatient beds, the succession process often takes 4 to 10 months from consultation to completion, allowing for considerations such as continued employment for staff and ongoing patient care.

M&A Medical Editorial Department’s Perspective

The fact that 123 private clinics have closed in Kagoshima Prefecture over a decade highlights the serious challenges facing regional healthcare. In particular, the dual burden of plummeting patient numbers and an aging physician population is a scenario that could occur not only in rural areas but also in the suburbs of urban centers. Closing a clinic can incur unexpected costs, including demolition expenses and debt settlement. On the other hand, as suggested by this news, business succession is not only more economically rational than simply shutting down but also holds significant social value in ensuring the continuation of medical institutions that have long served their communities. The specific timeframe of 4 to 10 months for the succession of clinics without inpatient beds serves as an important benchmark for planning. Constructing succession schemes that prioritize staff and patient considerations is the core strength of M&A brokerage and offers a path toward contributing to the sustainability of regional healthcare.

Points Raised by This News

• 123 private clinics closed in Kagoshima Prefecture over 10 years, manifesting concerns about the collapse of regional healthcare.
• Economic disparity: closure costs are millions of yen, while business succession can yield 0.5 to 1.5 times annual sales.
• Succession period for clinics without inpatient beds is typically 4-10 months; early consideration is crucial.
• Succession offers the potential to balance continued employment for staff with ongoing patient care.

Practical Questions Arising from This News

• What specific costs are involved in closing a clinic?
• How can patient care be continued without causing inconvenience during business succession?
• What is the approximate compensation likely to be for the business succession of my own clinic?

If You’re Thinking, “Should I Consult Too?”

If your clinic is experiencing a decline in patient numbers or an aging physician workforce, and you are considering future closure or feel a vague sense of unease, now is the time to consult. Closing a clinic not only incurs costs but also signifies the end of the role your institution has played in the community for many years. Business succession, however, opens a path to transfer your practice to the next generation in a way that reflects your intentions, such as ensuring staff employment and continued patient care. Begin by gathering information confidentially with experts about the possibilities and practical steps for succession.

M&A Medical (CentralMedience Inc.) is an M&A support institution certified by the Small and Medium Enterprise Agency, providing support for the business succession of medical corporations, hospitals, and clinics on a completely success-fee basis. We handle consultations with strict confidentiality. Free consultations are available here.