Doctor Shortage Worsens in Regional Healthcare… Clinics Closing, Departments Shrinking One After Another; Japan’s Medical System at a Turning Point – “The Guts” to Air on the 17th – Saga Shimbun

News Highlights

According to a report by the Saga Shimbun, the shortage of doctors in regional healthcare is becoming severe, leading to a series of clinic closures and reductions in medical departments. This suggests that Japan’s medical provision system is reaching a turning point, a topic also covered in the “The Guts” broadcast on the 17th. The news highlights indicate that while closing a clinic can cost several million yen, succession typically aims for a consideration of 0.5 to 1.5 times the annual sales. Succession for clinics without beds often completes within 4 to 10 months, and consulting before closure can potentially allow for the continuation of staff employment and patient care.

M&A Medical Editorial Department’s Perspective

The Saga Shimbun’s report highlights the pressing issue of doctor shortages in rural areas. In particular, the closure of clinics and the scaling back of medical departments are serious problems directly impacting the medical access of local residents. However, the “turning point” suggested by this news should be viewed not merely as a contraction of the medical provision system, but as a transition to new options such as business succession. The fact that closing a clinic incurs costs of several million yen suggests that going out of business is not always economically rational. In contrast, business succession can potentially yield consideration of 0.5 to 1.5 times the annual sales, bringing the dual benefits of utilizing management resources and maintaining/continuing regional healthcare. The fact that succession for clinics without beds often completes within 4 to 10 months suggests that swift decision-making can enable smooth business succession while minimizing impact on staff and patients. For business owners who only see closure as an option, business succession can be a realistic solution to prevent the extinguishing of regional healthcare services.

Points Raised by This News

• The doctor shortage in Saga Prefecture poses a direct threat to the sustainability of regional healthcare.
• Clinic closures not only involve closure costs but also have secondary effects, such as the loss of regional medical functions.
• Business succession is an effective means to avoid closure costs while transferring management resources (personnel, facilities, patient base) to the next generation.
• The relatively short succession period for clinics without beds suggests the importance of prompt decision-making and execution.

Practical Questions Arising from This News

• I am considering closing my clinic but want to know the specific procedures for business succession and what kind of potential successors can be found.
• How can staff employment and patient care continuation be guaranteed through business succession?
• Do the difficulty and consideration for business succession vary significantly depending on the clinic’s location, size, and medical department?

If You Feel “Should I Consult Too?”

If you, as a provider of regional healthcare, are facing doctor shortages or succession issues and feel anxious about the future of your clinic, it may be time to consider the possibility of business succession before opting for closure. While closing a clinic incurs costs of several million yen, succession can lead to the creation of new value. To prioritize the care of your staff and patients and ensure a smooth transition, we recommend consulting with specialists early on. Consultations are often free and can help you see concrete options.

M&A Medical (CentralMedience Inc.) is an M&A support organization certified by the Small and Medium Enterprise Agency, providing support for the business succession of medical corporations, hospitals, and clinics on a full success fee basis. We handle consultations with strict confidentiality. Free consultation here