Orthodontic Clinics Suddenly Closing… Why Are “Midnight Run Dentists” Increasing? Upfront Payment Troubles and the Harsh Reality of the Dental Industry – coki.jp

News Highlights

Orthodontic clinics are suddenly closing, causing problems with upfront payment troubles for patients. It is pointed out that such “midnight run dentists” are on the rise in the dental industry, especially in orthodontics. While closing down incurs costs of several million yen, business succession through M&A can potentially yield compensation equivalent to 0.5 to 1.5 times the annual sales. Succession of clinics without beds often completes within 4 to 10 months from consultation to closing, and early consultation can sometimes allow for both staff employment and continued patient treatment.

Perspective from M&A Medical Editorial Department

The news of “sudden closures of orthodontic clinics” cannot be dismissed as mere individual bankruptcy cases. In particular, upfront payment troubles shake patient trust at its core and could escalate into an issue of credibility for the entire industry. The background to such situations is presumed to be a complex interplay of structural issues such as soaring advertising and promotion costs, unstable cash flow in orthodontic clinics primarily focused on fee-for-service treatments, and lack of successors. If a clinic closes, not only will demolition costs and residual processing costs of several million yen be incurred, but issues of compensation to patients will also arise. In contrast, business succession allows for a smoother transition, such as maintaining staff employment and continuing patient treatment, while obtaining appropriate compensation. The fact that the succession period for clinics without beds, like the case in question, is 4 to 10 months suggests that early M&A consultation can be an effective option to avoid the worst-case scenario of closure.

Points Highlighted by This News

• Upfront payment troubles in orthodontic clinics carry the risk of damaging the trust of the entire industry.
• The economic difference between closure costs (several million yen) and compensation through business succession (0.5 to 1.5 times annual sales) is significant.
• M&A for clinics without beds can be completed in 4 to 10 months, making prompt decision-making crucial.
• Choosing succession over closure increases the possibility of balancing staff employment and continued patient treatment.

Practical Questions Arising from This News

• Can patients of a suddenly closed dental clinic receive refunds for their upfront payments?
• When considering closure, what specific costs (e.g., demolition costs) are incurred?
• For dental clinics considering M&A due to a lack of successors, how long does it take to sell?

If You Feel “Should I Consult Too?”

A situation where the term “midnight run dentist” becomes news is not something to be taken lightly by business owners. If you are concerned about future closure or a lack of successors, you should consider the option of business succession early on to minimize the costs of closure and the impact on patients and staff. Compensation of 0.5 to 1.5 times annual sales can potentially far exceed closure costs. First, consult with a specialized M&A intermediary company to obtain specific information about the options available in your clinic’s situation.

M&A Medical (CentralMedience Inc.) supports the business succession of medical corporations, hospitals, and clinics with a full 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 here