Medical Institution Bankruptcies Continue to Rise in First Half of 2026, Reaching 38 Cases (Second Highest for a First Half), with ‘Successor Shortage’ as the Leading Cause (Tokyo Shoko Research) – Yahoo! News

A survey by Tokyo Shoko Research revealed that the number of medical institution bankruptcies reached 38 in the first half of 2026, marking the second-highest level for a first half in history. Notably, ‘difficulty finding successors’ was the most frequent reason for bankruptcy, highlighting a reality where, in addition to management difficulties, the absence of successors is accelerating the closure of medical institutions.

Tokyo Shoko Research’s announcement that medical institution bankruptcies reached 38 in the first half of 2026, the second-highest level for a first half in history, presents a very serious reality for those involved in medical M&A and business succession practices. Particularly noteworthy is that the most frequent reason for these bankruptcies was ‘difficulty finding successors.’ This suggests that it’s not merely a matter of business failure; there are many cases where medical institutions that could have been succeeded through M&A ended up closing due to a lack of timely decisions or actions.

The Urgency of Medical Business Succession as Indicated by ‘Successor Shortage’ Bankruptcies in the First Half of 2026

The figure of 38 cases is unusually high for a single first half, clearly indicating an increasingly severe business environment for medical institutions. Within this context, ‘difficulty finding successors’ being the most frequent reason highlights the current situation where business succession for medical corporations has become a structural issue beyond mere management problems. In addition to the decline in intra-family succession, there is also a trend of younger doctors being less inclined to open their own practices than before, due to work-style reforms for doctors and the increasing risks associated with opening a new clinic. For medical corporations with equity interests, rising equity valuations and issues with capital gains tax often become barriers to succession. It is presumed that these complex factors lead to management stalemates without a successor, ultimately forcing the choice of bankruptcy.

M&A to Avoid Bankruptcy: Escaping ‘Deteriorating Current Ratio’ and ‘Consecutive Operating Profit Deficits’

The ‘deterioration of the current ratio’ and ‘consecutive operating profit deficits’ mentioned in the news highlights are clear signs before a medical institution reaches bankruptcy. Considering business succession through M&A at the stage when these management indicators begin to worsen is key to maximizing options and achieving a sale under more favorable terms. Particularly important is the possibility of releasing the clinic director’s personal joint guarantee. If an M&A is concluded while the business is in a healthy financial state, the acquiring party often assumes the medical corporation’s debts, allowing for the release of the director’s personal guarantee, which is almost impossible in bankruptcy proceedings. Furthermore, options for schemes such as business transfer or change of directors can be flexibly managed with early consideration.

Continuity of Regional Healthcare and Maintenance of Employee Employment: The Social Significance of M&A

The closure of a medical institution not only deprives patients of medical access and creates a significant void in the regional healthcare system but also directly leads to job losses for healthcare professionals working there. Especially in rural areas, the closure of the sole medical institution can potentially lead to a serious situation where the livelihood of local residents is destabilized. Succession through M&A allows for avoiding such negative impacts of closure, enabling the transfer of patient base, medical equipment, facility standards, and most importantly, the employment of healthcare professionals to the next generation. This can be said to have extremely important social significance from the perspective of effective utilization of medical resources within the regional healthcare vision.

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