“Monzen” Pharmacies Near Hospitals Face Hardship; Bankruptcies to Hit 30 in FY2025, a Record High for Second Consecutive Year; Threat of Drugstores “Becoming Pharmacies” Intensifies, Struggling as “Pharmacists” and “Patients” Are Siphoned Off – PR TIMES

This news highlights the structural challenges faced by "Monzen" pharmacies, which have historically worked closely with medical institutions. The projection that bankruptcies will reach a record high for the second consecutive year in FY2025 is not merely an issue for the pharmacy industry but a situation that could impact the entire healthcare delivery system. In particular, the expansion of dispensing services by drugstores directly threatens the vital lifelines of "pharmacists" and "patients" for "Monzen" pharmacies, exposing the fragility of their revenue structures.

From the perspective of medical M&A and business succession, this situation suggests the importance of "planned succession" rather than "life support." Business models like those of "Monzen" pharmacies, which are dependent on specific medical institutions, are extremely vulnerable to the financial health of those institutions, changes in their policies, or shifts in patient behavior. To avoid the worst-case scenario of bankruptcy, it is essential to consider business succession to a third party before management deteriorates or even shows signs of doing so.

For medical institution managers and those facing succession issues, the key takeaway is the importance of calmly assessing the "degree of dependence" and "diversity of revenue sources" of their own institutions or pharmacies. Just as "Monzen" pharmacies struggle to compete with drugstores, medical institutions are also exposed to changes in external environments, such as evolving patient healthcare-seeking behaviors and consolidation into larger medical groups. Consulting with business succession specialists early on to explore new partnerships and management models, while leveraging the strengths of your own institution or pharmacy, will pave the way for a sustainable future. It is particularly crucial to redefine the unique value of your institution or pharmacy, such as its role in the community-based integrated care system, rather than relying solely on prescriptions from hospitals, and to use this as leverage in business succession negotiations.