Record High 71 “Medical Institutions” Bankrupt in FY2025, Most in 20 Years; Acceleration of Clinic & Dental Clinic Consolidation, Over 97% Result in Bankruptcy (Tokyo Shoko Research) – Yahoo! News

News Highlights

Medical institution bankruptcies in FY2025 reached 71, the highest in the past 20 years. Consolidation is accelerating, particularly among clinics and dental clinics, with over 97% of these cases leading to bankruptcy. According to Tokyo Shoko Research, this trend is expected to continue. From the perspective of medical M&A and business succession, early consultation with specialists can broaden options and potentially lead to benefits such as negotiating the release of personal guarantees and ensuring the continuity of regional healthcare.

Perspective from M&A Medical Editorial Department

The fact that medical institution bankruptcies in FY2025 hit a 20-year high of 71, with over 97% resulting in bankruptcy, indicates a serious situation that could shake the foundations of regional healthcare. The accelerating consolidation, especially among clinics and dental clinics, is likely driven by a combination of factors including shrinking revenues due to recent medical fee revisions, rising labor and material costs, and lack of successors. Behind the mere numbers of “bankruptcies” lies the challenge of ensuring access to healthcare for local residents. At M&A Medical (CentralMedience Inc.), we strongly emphasize the importance for経営者 (management) to consider “succession” as an option rather than “closure” at an early stage. Executing an M&A while the business is still sound allows for negotiations on terms such as the release of the clinic director’s personal guarantees, while maintaining the patient base and staff employment. These 71 cases truly highlight the difference that “early consultation” can make.

Points Raised by This News

• The 71 medical institution bankruptcies in FY2025 are the highest since FY2005, indicating a deepening consolidation.
• Clinics and dental clinics are at the center of this consolidation, raising concerns about an increase in small-scale medical institutions finding it difficult to continue operations.
• The fact that over 97% of cases resulted in bankruptcy suggests that turnaround M&A is difficult in the current environment.
• From the perspective of maintaining regional healthcare, the need for succession-type M&A is increasing over closure.

Practical Questions Arising from This News

• Specifically, what types of clinics and dental clinics are more prone to bankruptcy?
• Is M&A still possible even when a business is on the verge of bankruptcy?
• To what extent can succession-type M&A mitigate the impact on regional healthcare?

If You’re Thinking “Should I Consult?”

If the news of a record number of medical institution bankruptcies in FY2025 has made you feel anxious about the possibility of your own clinic or practice becoming unable to continue operations, please consult with M&A Medical (CentralMedience Inc.) as soon as possible. By consulting when early warning signs of management difficulties appear, such as deteriorating current ratios or consecutive years of operating losses, you can maximize your options beyond simple closure. This includes exploring more advantageous choices like maintaining patients and staff employment through business succession, and even reducing the personal burden on the clinic director.

M&A Medical (CentralMedience Inc.) is an M&A support institution certified by the Small and Medium Enterprise Agency, offering support for the business succession of medical corporations, hospitals, and clinics on a complete success fee basis. Consultations are handled with strict confidentiality. Free consultation here