2025 Fiscal Year “Medical and Welfare Services” Bankruptcies Reach Record High – Surging Bankruptcies Among Businesses Supporting Health and Livelihoods (Tokyo Shoko Research) – Yahoo! News

News Highlights

A survey by Tokyo Shoko Research has revealed that the number of bankruptcies in the “Medical and Welfare Services” sector for the 2025 fiscal year has reached an all-time high. Bankruptcies among these businesses, which support health and livelihoods, are rapidly increasing, bringing issues such as early consultation for business succession, negotiation for the release of personal guarantees, and consideration for regional healthcare to the forefront. Emphasizing the option of succession over closure is crucial for securing a future for patients and staff.

Perspective from M&A Medical Editorial Department

The record-high number of bankruptcies in the medical and welfare services sector for fiscal year 2025 suggests more than just economic trends; it points to structural vulnerabilities within the industry. Particularly for small and medium-sized hospitals and clinics that form the backbone of regional healthcare, it is presumed that in addition to a lack of successors, recent surges in inflation and labor costs are pressuring management. Deteriorating current ratios and consecutive years of operating losses are typical examples where delaying action narrows the options for business succession through M&A. It is essential not to miss the opportunity to negotiate terms, such as the release of the clinic director’s personal joint guarantee, while the business is still in sound financial health, as this is indispensable for smooth succession and the maintenance of regional healthcare. This news underscores the reality that business owners should consider M&A and business succession not “someday,” but “now.”

Points Highlighted by This News

• Bankruptcies in the medical and welfare services sector in fiscal year 2025 have reached a record high, highlighting the severe management environment in the industry.
• Deteriorating current ratios and consecutive years of operating losses lead to an early loss of negotiation leverage for business succession through M&A.
• M&A conducted while the business is in sound financial health may facilitate more favorable negotiations, such as the release of the clinic director’s personal guarantees.
• Choosing business succession over closure contributes to the continuity of regional healthcare and the maintenance of livelihoods for patients and staff.

Practical Questions Arising from This News

• What are the specific causes for the increase in bankruptcies? (e.g., rising labor costs, impact of medical fee revisions, etc.)
• At what stage is it optimal to consult with specialists when considering business succession through M&A?
• Under what conditions can the release of personal guarantees be achieved?

If You Feel “Should I Consult Too?”

The news of a record-high number of bankruptcies in the medical and welfare services sector for fiscal year 2025 serves as a sign that you should seriously consider the future of your own practice. If you are observing signs of deteriorating financial conditions (e.g., declining current ratio, sluggish profit margins) or feel anxious about the future due to a lack of successors, early consultation for M&A and business succession can be an effective option. Consulting with experts is the first step to maximizing your options and achieving a succession under better terms, such as the release of personal guarantees and contributing to regional healthcare.

M&A Medical (CentralMedience Inc.) supports the business succession of medical corporations, hospitals, and clinics as a Small and Medium Enterprise Agency-certified M&A support institution, on a full success fee basis. We handle consultations with strict confidentiality. Free consultations are available here.