Hospital

News Highlights

According to a survey by Teikoku Databank, the number of bankruptcies among “monzen pharmacies” (pharmacies located near hospitals) is expected to reach 30 in fiscal year 2025, marking a record high for the second consecutive year. The primary threat stems from drugstores expanding their dispensing services and increasingly “becoming pharmacies.” This highlights the current situation where the business model of monzen pharmacies, which relies on prescriptions from specific medical institutions, is struggling to adapt to external environmental changes.

M&A Medical Editorial Department’s Perspective

The projected increase in monzen pharmacy bankruptcies is not merely a structural shift within the pharmacy industry; it carries significant implications for healthcare providers, especially those managing smaller hospitals and clinics that serve as regional medical hubs. The era is arriving where these institutions, along with the monzen pharmacies operating in their vicinity, will be jointly assessed for their経営 sustainability. The 30 bankruptcies predicted by Teikoku Databank represent the materialization of management risks faced by monzen pharmacies, which could indirectly impact the operations of the medical institutions issuing the prescriptions. For instance, the closure of a monzen pharmacy could diminish the convenience of hospital visits and medication for patients of that institution, potentially leading to patient attrition. Healthcare providers should monitor the financial health of pharmacies in their surrounding areas and consider more fundamental measures, such as restructuring pharmacy operations through M&A or integrating them into group companies with dispensing capabilities, if necessary.

Points Raised by This News

• The increase in monzen pharmacy bankruptcies can be an indirect risk factor affecting the management stability of medical institutions.
• The trend of drugstores transforming into pharmacies may influence not only monzen pharmacies but also prescription trends for small to medium-sized hospitals and clinics.
• Small to medium-sized hospitals and clinics supporting regional healthcare need to incorporate the management status of surrounding pharmacies into their business strategies.
• Consideration of collaboration and integration schemes between medical institutions (prescription issuers) and dispensing pharmacies may be key to business continuity.

Practical Questions Arising from This News

• If a monzen pharmacy near our institution faces financial difficulties, what impact will it have on patient visits and medication adherence?
• Is there a possibility that the worsening financial health of a monzen pharmacy could affect our institution’s management?
• What types of schemes can be considered when contemplating an M&A for a monzen pharmacy?

If You Feel “Should I Consult?”

If you observe intensifying competition from drugstores entering the dispensing market or signs of financial distress in pharmacies near your institution, it could potentially impact your own management. The closure of a monzen pharmacy can lead to reduced patient convenience and, consequently, a risk of patient loss. This may be the opportune moment to consider options such as collaboration or integration with pharmacy operations to ensure both the strengthening of your institution’s management base and the sustainability of regional healthcare.

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