When the control of Denken was transferred to the state in 1899, KITAZATO resigned as head and started working at Tsukushigaoka yojoen, which was established by Yukichi, Sensai NAGAYO, and Ichizaemon MORIMURA.
明治32年（1899年）に伝研が国に移管されると、北里は伝研の所長を辞任し、福澤と長与専斎と森村市左衛門とが創設した土筆ヶ岡養生園に移った。