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

The figure of 30 bankruptcies among "Monzen" pharmacies in FY2025, as reported by Teikoku Databank, clearly indicatesthe end of the traditional business model where proximity to a hospital guaranteed stability.The rise of major drugstores strengthening their dispensing functions is not merely the emergence of competitors, but is fundamentally rewriting patient pathways.

In the context of medical M&A, this dynamic is an "external environmental risk" that significantly impacts valuation. For clinics considering succession, the financial instability of adjacent pharmacies can damage their own goodwill (noren) by reducing patient convenience. Buyers are now rigorously scrutinizing not only the target medical institution's financial statements but alsothe viability of nearby "Monzen" pharmacies and the presence of surrounding drugstores.Owners facing succession issues must confront not only the improvement of their own practice's management but also

the risk of their "division of medical practice" partners being eliminated by major chains.Pharmacy bankruptcies signify a gap in the regional healthcare infrastructure. Securing a reliable dispensing partner, or attracting one, through early business succession planning will be the greatest defense in preserving the value of the medical institution.We must confront the reality that pharmacy bankruptcies lead to a critical loss of healthcare infrastructure within communities. Proactive business succession planning, which includes establishing a robust system to retain or attract reliable dispensing partners, will serve as the most effective strategy to safeguard the asset value of medical institutions.