Due to the Director’s Health Reasons… An Obstetrics and Gynecology Hospital in Nagano City, Supporting Local Births for 70 Years and Offering “Painless Childbirth” for the Past 7 Years, to Close at the End of 2026 | SBC NEWS | Nagano News | SBC Shin

It has been revealed that an obstetrics and gynecology hospital in Nagano City, which has supported local births for 70 years and has offered painless childbirth for the past 7 years, will close at the end of 2026 due to the director’s health reasons. This news highlights the difficulty of business succession for clinics with inpatient beds, the impact of closure on local healthcare, and the importance of continued operation through succession.

Difficulty of Succession for “Clinics with Inpatient Beds” as Shown by the Closure of Nagano City’s Obstetrics and Gynecology Clinic

The closure of an obstetrics and gynecology hospital with a 70-year history in Nagano City particularly highlights the unique challenges involved in the business succession of “clinics with inpatient beds.” Generally, compared to clinics without inpatient beds, the succession of clinics with inpatient beds involves a wide range of considerations, including facility standards, staffing (securing doctors and midwives), maintenance and renewal of medical equipment, and, in the case of medical corporations, valuation of equity interests or funds. Obstetrics and gynecology departments face structural challenges such as 24-hour readiness for deliveries, medical malpractice risks, and regional maldistribution of specialists, which further increases the difficulty of finding a successor. While maintaining perinatal care is an urgent issue in regional healthcare plans, there are many cases where continued operation through business succession, rather than mere closure, is desired.

Grace Period and Challenges Arising from the Director’s Health Issues and the Decision to Close at the End of 2026

The decision to close at the end of 2026, providing a grace period of approximately two and a half years, offers the advantage of securing a certain preparation period for considering business succession. This period allows for planned progress in searching for potential successors, transferring corporate status and licenses as a medical corporation, leasing or selling land and buildings, continuing employment for existing staff, and informing and transitioning patients. However, considering the specialization of obstetrics and gynecology, the regional characteristics of Nagano, and the complexity of being a clinic with inpatient beds, this period is by no means ample. In particular, tax and legal considerations, such as changes in board members (directors) of a medical corporation or capital gains tax on the transfer of equity interests in the case of a medical corporation with equity, must also be pursued in parallel.

Value of “Medical Technology Succession” as Demonstrated by Painless Childbirth Implementation Record

The fact that this obstetrics and gynecology hospital introduced painless childbirth seven years ago suggests that not only facilities and equipment but also cultivated medical technology and clinical know-how can be subjects of succession. Since painless childbirth requires collaboration with anesthesiologists and specific techniques, its track record and facility standards can be a significant selling point for the acquiring party. The hospital’s record of providing advanced medical services in the region may also be considered an “intangible asset” when evaluating the transfer price. In the perinatal care system within Nagano Prefecture, a reduction in medical institutions offering painless childbirth could narrow patients’ options in the region, thus the significance of transferring this technology and service is considerable.

Comparison of Closure Costs and Business Succession Value: Business Decisions from Nagano’s Case Study

As highlighted in the news, while closure incurs costs in the range of several million yen, business succession potentially yields a consideration of approximately 0.5 to 1.5 times the annual revenue. The annual revenue of an obstetrics and gynecology clinic varies depending on the number of deliveries and outpatient services, but a clinic with a 70-year history and a track record of painless childbirth, being a clinic with inpatient beds, is presumed to have had a substantial revenue base. If closure is chosen, costs such as demolition expenses, medical waste disposal fees, employee severance pay, and patient transfer support fees will arise. In contrast, business succession avoids these costs and, by obtaining a transfer price, potentially secures retirement funds for the director or investment capital for new ventures. Especially in the case of a medical corporation, it is crucial to consider the most advantageous option after taking into account tax implications, such as capital gains tax on the profit from the transfer of equity interests. A multifaceted comparison of the economic and social impacts of “closure” versus “succession” is required.

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