News | Research Center for Healthcare Management – ritsumei.ac.jp

News Highlights

The Ritsumeikan University Research Center for Healthcare Management points out the importance of third-party succession for medical institutions. In particular, it recommends third-party succession as an alternative to closure or going out of business for situations where there is no successor.lack of successor. It urges directors and presidents to start early preparations in 5- to 10-year increments from around age 60 and suggests utilizing specialized advisors focused on the medical industry. This provides a concrete path to enhance the sustainability of medical institutions.

Perspective from M&A Medical Editorial Department

The proposal from the Ritsumeikan University Research Center for Healthcare Management is significant in clearly positioning “third-party succession” as a practical solution to the business succession issues faced by medical institutions. It goes beyond merely lamenting the lack of successors; the specific timeline of “5- to 10-year span” preparations starting around age 60 and the designation of an execution team through the use of medical industry-specialized advisors offer a clear answer to the challenge many medical corporations face: “I don’t know what to do or how to do it.” Especially for small to medium-sized hospitals and clinics that bear regional medical responsibilities, cases where family or employee succession is difficult are increasing, making third-party succession not just an option but an “essential consideration.” This proposal can be seen as presenting a concrete action plan for such medical institution managers to avoid the worst-case scenario of closure or going out of business, and to protect their businesses and regional healthcare.

Key Issues Highlighted by This News

• The specific necessity of starting business succession preparations in a 5- to 10-year span from around age 60
• The effectiveness and promotion of “third-party succession” as an alternative to closure or going out of business
• Recommendation for specialized and effective succession support through the utilization of medical institution-specific advisors
• The importance of an early and strategic approach to successor issues from the perspective of maintaining regional healthcare

Practical Questions Arising from This News

• Specifically, what kind of medical institutions should consider third-party succession?
• What specific services do advisors specialized in the medical industry provide?
• What are the most critical points to be aware of when proceeding with third-party succession?

If You Feel “Should I Consult Too?”

This applies if the director or president is around 60 years old and is struggling with a lack of successor, or feels future anxiety. If you wish to avoid closure or going out of business, and want to keep the light of the medical institution burning that has been cultivated over many years, and continue contributing to regional healthcare, the proposal from this research center is highly likely to be a concrete first step for your institution. It is likely time to consider consulting with specialists about the options and process of third-party succession.

M&A Medical (CentralMedience Inc.) supports the business succession of medical corporations, hospitals, and clinics with a completesuccess feesystem as an M&A support institution certified by the Small and Medium Enterprise Agency. Consultations are accepted with strict confidentiality. Free consultation here