“70% of Hospitals Are Actually Operating at a Loss”: Why Highly Educated Doctors Fail at Management – Gendai Business

The Gendai Business article presents the shocking reality that even highly educated doctors fail at management, leading to 70% of hospitals falling into deficit. This suggests the necessity of expertise in diverse fields such as management, finance, legal affairs, and human resources, which differ from medical technology and clinical skills. Specifically, the suppression of medical fees, rising labor costs, and the burden of investing in advanced medical equipment highlight the reality that simply providing high-quality medical care does not guarantee financial sustainability.

In the context of medical M&A and business succession, this "70% deficit" figure implies that many medical institutions face potential future management difficulties. The reasons for management failure pointed out in the article (likely including lack of successors, insufficient specialized knowledge, and outdated management strategies) underscore the importance of early consultation with experts when considering M&A or business succession. By exploring succession options while the institution is still healthy, or when signs of deficit begin to appear, it becomes possible to reduce the personal debt risk of the director (such as personal guarantees), secure a transfer price, and most importantly, minimize the impact on the continuity of regional healthcare and on staff and patients.

For readers facing owner or successor issues, the key takeaway is the importance of focusing on management challenges outside of one's specialty early on and actively utilizing the expertise of external professionals (M&A consultants, tax accountants, lawyers, etc.) when necessary. Instead of waiting for deficits to become apparent, strategically considering business succession as an option by promptly identifying signs of cash flow or profit improvement is key to enhancing the sustainability of medical institutions.