[Ganko Shihi] Medical Institutions Should Also “Undergo a Check

News Highlights

The Nikkei Medical Online article “[Ganko Shihi] Medical Institutions Should Also ‘Undergo a Check-up'” emphasizes the importance for medical institution managers to objectively evaluate their own management status from the perspective of a “patient.” It highlights the value of choosing third-party succession as an option for medical institutions facing a lack of successors or management difficulties, rather than closure or廃業 (haigyo – ceasing business). The article recommends that chairpersons and directors begin preparations on a 10-year timeline starting around age 60 and encourages the utilization of specialized advisors focused on the medical industry.

M&A Medical Editorial Department’s Perspective

What this article suggests is the importance of “self-diagnosis” in medical institution management. Particularly for many medical corporations and clinics facing a lack of successors, the options for business succession narrow as the chairperson or director ages. For example, if a medium-to-small scale medical corporation supporting regional healthcare begins to consider “business succession soon” after turning 60, it will take considerable time to search for potential buyers and negotiate terms. If a clinic that has been long cherished in the community were to suddenly close due to a lack of successors, patients would disperse to nearby medical institutions, significantly impacting the regional healthcare system. To avoid such a situation, this article argues that one should consider the option of “third-party succession” from an early stage and, together with specialists (such as M&A intermediaries), develop a “management health check-up” and a “treatment plan.”

Points Raised by This News

• The necessity for medical institution managers themselves to objectively view their institution’s management as a “patient.”
• For medical institutions lacking successors, “third-party succession” is a viable option besides closure or ceasing business.
• Chairpersons and directors should commence long-term business succession preparations on a 10-year basis, starting around age 60.
• Utilizing specialized advisors focused on the medical industry is key to smooth business succession.

Practical Questions Arising from This News

• How can I objectively evaluate my clinic’s management status from a patient’s perspective?
• In cases of a lack of successors, what specific schemes are involved in third-party succession?
• When starting preparations for business succession around age 60, what specific steps should be taken?

If You Feel “Should I Consult Too?”

Medical institution managers who have vague anxieties such as, “Our clinic’s director is elderly and there’s no successor,” or “Management has been tough lately, and I don’t know what to do,” should consider consulting with a specialist at this opportunity. Especially if you wish to continue contributing to regional healthcare or minimize the impact on patients from closure, early consideration of third-party succession is essential. Why not start with a “management health check-up” to objectively grasp your institution’s current situation?

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