71 Medical Institutions Filed for Bankruptcy Last Year, the Highest in 20 Years, Due to Decreased Patient Numbers and Rising Utility and Labor Costs – TV Asahi News

The news that 71 medical institutions, the highest number in 20 years, filed for bankruptcy last fiscal year highlights the severe management environment in the healthcare industry. It suggests that external factors such as declining patient numbers, coupled with soaring utility and labor costs, are putting pressure on small and medium-sized medical institutions, particularly those with weaker financial foundations.

In such circumstances, M&A and business succession for medical institutions become not merely an "exit strategy for management difficulties" but a crucial option for maintaining regional healthcare and protecting staff employment. To avoid the worst-case scenario of bankruptcy, it is extremely important to consult with experts early on, before financial conditions deteriorate and the institution becomes insolvent. Early consultation maximizes options for securing compensation through business transfer, negotiating the release of the director's personal debt guarantees, and, above all, smoothly transferring the patient base and staff employment cultivated over many years to the next operator.

Executives, especially the leaders of medical institutions struggling with a lack of successors, should take this news as a warning to objectively reassess their institution's management status and prepare for future risks. Before reaching the point of closure, it is now imperative to recognize that there is a path toward contributing to the local community and ensuring organizational survival through business succession, and to actively gather information and consider consulting with experts.