[Worst Level in 20 Years] Over 80% of Public Hospitals and Over 60% of Private Hospitals Operating at a Loss: What are the Structural Issues Behind This Serious Situation? – Money Post WEB

The fact that 80% of public hospitals and 60% of private hospitals are operating at a loss"the worst in 20 years"symbolizes that Japan's medical care provision system has entered a period of fundamental restructuring. Rising prices and wage increase pressures are exceeding the growth in medical fees, and structural deficits that cannot be covered by self-help efforts alone are becoming entrenched. This signifies that the conventional model of "independent operation" is reaching its limits, particularly for hospitals in rural areas or those of small to medium size.

From an M&A perspective in the medical field, determining the "optimal time to sell" for the transferring party becomes more critical than ever. If the deficit widens and net assets are impaired, even if a successor corporation emerges, it becomes more likely that negotiations will be disadvantageous regarding conditions such as the release of personal guarantees and the maintenance of staff treatment.To fulfill the "continuation of regional medical care" mission, it is essential to explore capital alliances or management integrationswith a proactive approach.

For management, the current situation is not a "temporary recession" but an "irreversible change." Before deficits become normalized, objectively evaluate your institution's functions and establish complementary relationships with other organizations to secure the option"to continue the hospital in a different form" rather than "to close the hospital"at an early stage.