Pediatric and Adolescent Care Closures Increase, Highest Business Closure Rate Nationwide – CHOSUNBIZ

News Highlights

According to CHOSUNBIZ in Korea, closures of pediatric and adolescent care departments are increasing nationwide, reaching the highest business closure rate. While closing a practice incurs costs of several million yen, the guideline for the consideration in business succession is typically 0.5 to 1.5 times the annual sales. For the succession of clinics without beds, many cases are completed within a standard period of 4 to 10 months from consultation to agreement, and early consultation may allow for the continuation of staff employment and patient care.

M&A Medical Editorial Department’s Perspective

The increase in pediatric and adolescent care closures in Korea is a trend that cannot be ignored by healthcare providers in Japan. In particular, the figures indicating that closing a practice can cost millions of yen, while business succession can yield consideration of 0.5 to 1.5 times annual sales, suggest the economic rationality of M&A as an option. The fact that the succession period for clinics without beds is often completed within 4 to 10 months indicates that swift decision-making and execution are key to minimizing the impact on staff and patients. From the perspective of continuing regional healthcare, not just simple closure, business succession can be a strong alternative.

Points Highlighted by This News

• The increase in closures of pediatric and adolescent care departments suggests a challenging business environment for specific medical specialties.
• The difference between closure costs and consideration for business succession suggests the potential economic rationality of M&A.
• The relatively short succession period for clinics without beds indicates the possibility of swift M&A execution.
• Balancing the continuation of staff employment and patient care is a critical consideration for succession schemes.

Practical Questions Arising from This News

• What are the specific factors contributing to the increase in closures of pediatric and adolescent care departments?
• Based on the Korean case, what are the future management risks for pediatric and adolescent care clinics in Japan?
• What factors influence the variation in business succession consideration (0.5 to 1.5 times annual sales)?

If You’re Thinking “Should I Consult?”

If you are managing a pediatric and adolescent care clinic and are concerned about future business continuity, you should consider business succession as an option, not just closure. While closing a practice incurs costs of several million yen, business succession offers the possibility of continuing regional healthcare while potentially receiving a certain level of consideration. As cases can be completed in about 4 to 10 months from consultation to agreement, it is recommended to first consult with specialists to consider the optimal option for your clinic’s situation.

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