Hospital

News Highlights

According to Teikoku Databank, the number of bankruptcies among “monzen pharmacies” located near hospitals is expected to reach 30 in fiscal year 2025, marking a record high for two consecutive years. This trend is driven by drugstores expanding their dispensing services, encroaching on the customer base of monzen pharmacies. The vulnerability of the business model, which relies heavily on prescriptions from specific medical institutions, is becoming apparent for monzen pharmacies.

M&A Medical Editorial Department’s Perspective

The increase in bankruptcies of monzen pharmacies is not merely a trend within the pharmacy industry but a signal that hospital management cannot afford to ignore. Many monzen pharmacies are closely linked to the revenue structure of hospitals, and the worsening financial health of these pharmacies could indicate shifts in patient flow and impact regional healthcare services for those hospitals. For instance, if a specific monzen pharmacy is forced to close, its patients may seek services at nearby drugstores, potentially leading to a decrease in outpatient numbers for the hospital itself. The figure of 30 bankruptcies predicted by Teikoku Databank highlights this structural issue. M&A Medical (CentralMedience Co., Ltd.) supports the planning of comprehensive business succession and M&A strategies, not only for hospitals but also for affiliated pharmacies, taking into account these pharmacy industry trends.

Points Raised by This News

• The increase in monzen pharmacy bankruptcies suggests a potential link to hospital patient outflow risks.
• The strengthening of dispensing functions by drugstores impacts not only monzen pharmacies but also hospital management.
• M&A for monzen pharmacies dependent on specific hospitals should be considered in conjunction with the hospital’s own succession strategy.
• The forecast of 30 bankruptcies in FY2025 indicates an acceleration of industry consolidation.

Practical Questions Arising from This News

• If a monzen pharmacy goes bankrupt, where do the hospital’s patients go?
• Is the trend of drugstores becoming dispensing pharmacies expected to continue?
• As a hospital manager, how should one assess the financial health of a monzen pharmacy?

If You Feel “Should I Consult?”

If there is a monzen pharmacy near your hospital that appears to be facing financial difficulties, it may be a precursor to patients changing their healthcare providers. Changes at a monzen pharmacy could indirectly affect your hospital’s outpatient numbers and revenue. M&A Medical (CentralMedience Co., Ltd.) offers consultation services for business succession and M&A, taking into account regional healthcare collaboration. Please feel free to discuss your current management challenges and future outlook with us.

M&A Medical (CentralMedience Co., Ltd.) is an M&A support institution certified by the Small and Medium Enterprise Agency, providing support for the business succession of medical corporations, hospitals, and clinics on a full success fee basis. Consultations are handled with strict confidentiality. Free consultation here