Northern Kyoto Prefecture’s “Only Medical Institution in Town” to Reopen After Nearly 2 Years, Following Townspeople’s Requests – Kyoto Shimbun Digital

News Highlights

The “only medical institution in town” in northern Kyoto Prefecture, which had closed down, has decided to reopen after approximately two years. Following strong requests from townspeople, the medical provision system will be maintained. The news highlights suggest information such as closure costs amounting to several million yen, a benchmark for business succession consideration of 0.5 to 1.5 times annual sales, and a succession period of 4 to 10 months for clinics without beds. It is also pointed out that consultation prior to closure can enable both the continuation of staff employment and patient treatment.

M&A Medical Editorial Department’s Perspective

Considering the regional characteristics of northern Kyoto Prefecture, the reopening of this “only medical institution in town” signifies more than just the survival of a clinic. The approximately two-year gap in local medical services likely had widespread impacts on residents’ health maintenance, including increased travel burdens for the elderly and anxiety regarding emergency response. The background to the consideration or failure to realize business succession options may stem from the low liquidity of the M&A market for clinics without beds, the absence of successor candidates, and above all, the difficult decision-making process by the management leading to the choice of “closure.” It is a case worth noting for its specific figures and processes, focusing on what kind of scheme (third-party succession, collaboration with the local medical association, administrative support, etc.) was adopted for the reopening, and how the benchmark consideration of “0.5 to 1.5 times annual sales” was determined.

Points Raised by This News

• The significant impact on residents’ lives due to a nearly two-year gap in local medical services.
• The possibility that the unique location of being the “only one in town” became a special factor in considering business succession.
• The strong requests from townspeople and the collaboration of administrators and stakeholders behind the decision to reopen rather than close.
• Verification of how the benchmark consideration and period for succession were applied in this case.

Practical Questions Arising from This News

• How did patients receive medical care during the approximately two years of closure?
• Were there any changes in the medical staff secured or the specialties offered for the reopening?
• What were the hurdles encountered when considering business succession?

If You Feel “Should I Consult Too?”

If your clinic is the only, or one of the few, medical institutions in its area and is facing challenges such as a lack of successors or financial difficulties, this news serves as an opportunity to reconsider the possibilities of business succession. “Closure” represents a significant loss to the community, and many of its costs cannot be quantified in monetary terms. By consulting with experts at an early stage, you may be able to explore succession schemes that align with your intentions while preserving local medical care.

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