185th Labor Policy Council, Safety and Health Subcommittee (Meeting Announcement)

News Highlights

The 185th Labor Policy Council, Safety and Health Subcommittee will be held. This subcommittee is expected to discuss future legal revisions and policy directions concerning occupational safety and health. In particular, long working hours, excessive work, and mental health measures in medical institutions may be the focus, making it necessary for executives and managers to pay close attention to the latest trends.

Perspective from M&A Medical Editorial Department

The announcement of the Labor Policy Council, Safety and Health Subcommittee meeting may not seem directly related to M&A and business succession in medical institutions at first glance. However, it could be a catalyst for addressing the “working environment,” which significantly impacts the sustainability of medical institutions. Especially as reforms to physician working hours progress, the revenue structure and the difficulty of securing human resources for medical institutions are increasing year by year. If this discussion suggests, for example, stricter regulations on overtime, corresponding subsidies for personnel costs, or the establishment of new medical care delivery systems, it would immediately affect the management costs and operational structure of medical institutions. Particularly for small hospitals and clinics in rural areas, securing doctors and nurses is an urgent issue, and a deteriorating working environment directly leads to the risk of closure. Against this backdrop, management will be compelled to consider third-party succession or M&A more proactively and concretely as a means to balance “improvement of the working environment” with “business continuity.”

Points Raised by This News

• Discussions on legal revisions and policies regarding occupational safety and health in medical institutions directly impact management costs and human resource acquisition.
• The advancement of reforms for physician working hours forces changes in the revenue structure and operational systems of medical institutions.
• For small medical institutions in rural areas, a worsening working environment increases the risk of closure.
• Management should consider M&A and business succession early as measures to balance working environment improvement and business continuity.

Practical Questions Arising from This News

• What specific labor issues in medical institutions are likely to be discussed at this Labor Policy Council?
• If working hour regulations are strengthened, to what extent will it affect our hospital’s revenue?
• In a situation where securing doctors and nurses is difficult, are there concrete M&A schemes to continue operations while improving the working environment?

If You Feel “Should I Consult?”

The discussions at the Labor Policy Council may have a significant impact on the future management environment of medical institutions. Especially as reforms for physician working hours progress, securing human resources and increasing personnel costs will be urgent issues for many medical institutions. If your institution feels that “the business will not be sustainable in the future under the current circumstances” or “fundamental measures are needed to resolve the personnel shortage and continue/develop the business,” this may be an excellent opportunity to start considering third-party succession or M&A. Let’s begin by consulting with experts to explore options that suit your institution’s situation.

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