“Monzen” Pharmacies Near Hospitals Face Hardship; 30 Bankruptcies Expected in FY2025, a Record High for Two Consecutive Years; Threat from “Drugstore-to

News Highlights

According to Teikoku Databank, “monzen” pharmacies located near hospitals are projected to see 30 bankruptcies in fiscal year 2025, marking a record high for the second consecutive year. This trend is driven by drugstores expanding their dispensing services, thereby threatening the customer base of monzen pharmacies. The deteriorating financial health of monzen pharmacies could also impact the regional healthcare provision system.

M&A Medical Editorial Perspective

The projected increase in bankruptcies of monzen pharmacies signifies more than just hardship within the pharmacy industry; it highlights the vulnerability of entities that serve as the “last bastion” of regional healthcare. The current situation, where monzen pharmacies, deeply rooted in their communities and acting as the final gatekeepers for medication supply, are being pressured by the “wave from a different industry”—the expansion of dispensing services by drugstores—is not irrelevant to healthcare facility managers. For instance, if a monzen pharmacy that relied heavily on a specific hospital is forced to close, its patients, particularly the elderly or those with difficulty commuting, face the risk of losing their access to medication. At M&A Medical (CentralMedience Co., Ltd.), we have handled numerous schemes where such monzen pharmacies are transferred to new operators (such as pharmacy chains or medical corporations seeking to strengthen regional healthcare collaboration) through business succession. By recognizing management challenges early and collaborating with specialists, it becomes possible to resolve issues like the release of personal guarantees for management, not just through closure, but by maintaining contributions to patients and the community.

Points Raised by This News

• The reality that the “drugstore-to-pharmacy” trend is directly pressuring the management of monzen pharmacies.
• The forecast of 30 bankruptcies in FY2025 suggests the severity of structural challenges faced by monzen pharmacies.
• The worsening management of monzen pharmacies impacts medication access for patients of the respective hospitals, especially the elderly and those with difficulty commuting.
• The continuation and succession of monzen pharmacy businesses are critical issues from the perspective of maintaining the regional healthcare provision system.

Practical Questions Arising from This News

• Are monzen pharmacies losing customers to drugstores due to price competition or differences in service content?
• What specific management improvement measures can monzen pharmacies at high risk of bankruptcy implement?
• What kind of support or collaboration should hospitals consider in response to the deteriorating management of monzen pharmacies?

If You Feel “Should I Consult Too?”

If you are managing a monzen pharmacy near a hospital and have recently noticed a decrease in prescription numbers or a decline in profitability, early consultation is essential. As Teikoku Databank’s forecast indicates, this industry is facing structural changes. At M&A Medical (CentralMedience Co., Ltd.), we will conduct a detailed analysis of your situation and explore optimal solutions together, including options other than closure, such as finding new partners through business succession or selling your pharmacy business. We can also develop strategies to release personal guarantees and minimize the impact on patients and the community.

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 accepted with strict confidentiality. Free consultations are available here.