Minutes of the 35th Meeting of the Labor Policy Council’s Working Livelihood Division

News Highlights

At the 35th meeting of the Labor Policy Council’s Working Livelihood Division, the issue of successors for medical institutions was discussed as an urgent challenge. The importance of third-party succession as an alternative to closure or廃業 (business dissolution) was pointed out, and it was suggested that directors and presidents should begin preparations 5 to 10 years in advance, around the age of 60. The utilization of specialized advisors focused on the medical industry is also recommended.

Perspective from M&A Medical Editorial Department

The discussions at this Labor Policy Council meeting suggest that the successor issue for medical institutions has reached a level that cannot be overlooked, not just as an individual management challenge, but also from the perspective of maintaining the social security system. In particular, the point about “the value of choosing third-party succession over closure or廃業” once again highlights the raison d’être of specialized intermediaries like M&A Medical (CentralMedience Inc.). Preparation over a 5 to 10-year period starting around age 60 is a sufficient timeframe to maximize business value and achieve smooth succession, meaning that early consultation with experts leads not just to avoiding closure, but to “succession to the next generation with value.” To ensure the lights of regional healthcare do not go out, proactive consideration of business succession triggered by this discussion is required.

Points Raised by This News

• The shortage of successors in medical institutions has reached a level where it is not merely an aging of management but raises concerns about the impact on regional healthcare provision systems.
• It is essential to foster momentum to concretely consider third-party succession (M&A) before closure or discontinuation of business becomes the only option.
• The importance of directors and presidents formulating and executing business succession plans in 10-year increments, starting around age 60, was indicated at the policy discussion forum.
• The utilization of specialized advisors who understand the complex circumstances unique to the medical industry holds the key to successful succession.

Practical Questions Arising from This News

• What specific third-party succession schemes exist, and which one is suitable for our institution?
• If we are to start preparations around age 60, what specifically should be done, from when, and how?
• What information needs to be provided when consulting with a specialized advisor?

If You Feel “Should I Consult Too?”

If your institution’s director or president is approaching age 60 and feels vague anxiety about future business succession, or is beginning to think “Do I have to consider closing down?”, now is the time to consult. Closure is the last resort, and at M&A Medical (CentralMedience Inc.), we will work with you from an early stage to explore the possibilities of third-party succession that can maximize your institution’s value and contribute to the continuation of regional healthcare. Shall we start by organizing the current situation and identifying future options?

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