Medical Institution Bankruptcies Reach 71 Cases in FY2025, the Highest in 20 Years, According to Tokyo Shoko Research – MEDIFAX web

News Highlights

The number of bankruptcies among medical institutions reached 71 in FY2025, the highest in the past 20 years, according to a survey by Tokyo Shoko Research. This figure highlights the severe challenges facing the management of medical institutions. Early consultation with experts is crucial for maximizing options in M&A, including negotiating the release of personal guarantees and ensuring the continuity of regional healthcare, patients, and staff.

Perspective from M&A Medical Editorial Department

The figure of 71 medical institution bankruptcies in FY2025 is not merely a statistical increase but an issue that cannot be overlooked from the perspective of maintaining and developing regional healthcare. In particular, when signs such as deteriorating current ratios or consecutive years of operating losses appear, prompt consideration of M&A becomes essential. For example, if a medical corporation operating multiple clinics in a metropolitan area chooses to close due to the double blow of a lack of successors and declining profitability, it can lead to a chain of problems, including the creation of a healthcare void in the region and unemployment for the staff who were employed. By proceeding with M&A while the institution is still sound, there is room for negotiation on terms such as the release of the director’s personal guarantees, thereby enhancing the possibility of smooth business succession and the continuation of regional healthcare.

Key Discussion Points from This News

• The 71 bankruptcies, the highest in 20 years, suggest structural difficulties in the management of medical institutions.
• Deteriorating current ratios and consecutive losses are clear signals prompting early consideration of M&A.
• M&A conducted in a sound state provides important bargaining chips for management, such as the release of personal guarantees.
• Choosing succession over closure allows for contributions to the region by protecting the livelihoods of patients and staff.

Practical Questions Arising from This News

• What factors led to the deterioration of management in the 71 bankrupt medical institutions?
• In what specific ways is the impact on regional healthcare manifesting?
• What is the difference between successful and unsuccessful M&A succession cases?

If You Feel “Should I Consult Too?”

If your institution is facing challenges such as recent declines in revenue or a lack of successor candidates, do not dismiss this figure of 71 cases as something that concerns others. To avoid the worst-case scenario of bankruptcy, and to proceed with business succession under more favorable terms, consulting with experts at an early stage when management is still stable is the only way to broaden your options.

M&A Medical (CentralMedience Inc.) supports the business succession of medical corporations, hospitals, and clinics as a certified M&A support institution by the Small and Medium Enterprise Agency, on a full success fee basis. Consultations are accepted with strict confidentiality. [Free consultation here](https://ma-med.net/contact/)