Wholesaler Association Chairman Miyata Calls for Accelerated Distribution Improvements, Stating “This is Truly a Crucial Moment” Amidst Facility Standards in Medical and Dispensing Fee Revisions – m3.com

News Highlights

Amidst the establishment of facility standards in medical and dispensing fee revisions, Chairman Miyata of the Wholesaler Association has called the improvement of pharmaceutical distribution “truly a crucial moment,” urging for its acceleration. This move is seen as prompting a review of distribution costs linked to drug price revisions and the rebuilding of distribution networks tailored to regional needs. Particularly for small pharmacies, maintaining facility standards and the increased burden of capital investment may pose management challenges, making business succession and management strategies such as pursuing economies of scale through M&A or utilizing tax incentives by transitioning to specific medical corporations or social medical corporations even more critical.

M&A Medical Editorial Perspective

The words of Wholesaler Association Chairman Miyata, “Distribution improvement is at a crucial moment,” suggest not merely the statement of an industry association leader, but the arrival of a period of structural transformation in pharmaceutical distribution. In particular, the establishment of facility standards in medical and dispensing fees directly impacts pharmacy management, demanding “economies of scale” and “efficiency” more than ever before. For example, depending on the region, increasing the dispensing ratio of generic drugs and establishing a 24-hour service system may become essential for maintaining facility standards, and the burden of capital investment and staffing for these initiatives will weigh heavily on independent small pharmacies. In such circumstances, M&A that integrates or collaborates with multiple pharmacies, or group formation for sharing management resources, can be a powerful option not only for expanding scale but also for dispersing the investment burden to meet facility standards and achieving management efficiency. Furthermore, considering tax schemes with a view to transitioning to specific medical corporations or social medical corporations may also contribute to long-term management stability.

Key Discussion Points from This News

• The era is shifting towards one where facility standards strongly demand efficiency and economies of scale in pharmacy management.
• Increasing the dispensing ratio of generic drugs and establishing 24-hour service systems could become “survival standards” for pharmacies.
• Small pharmacies face the risk of difficulty in maintaining independent operations due to increased burdens from capital investment and staffing.
• Sharing management resources and dispersing investment burdens through M&A or group formation are key to achieving facility standards and management stability.

Practical Questions Arising from This News

• What specific capital investments and system preparations are required by the current establishment of facility standards?
• What future impact will pharmacies with low generic drug dispensing ratios face?
• When considering M&A, what are the key points for identifying a partner that can contribute to maintaining and improving facility standards?

If You Feel “Should I Consult Too?”

It is time to objectively evaluate whether your clinic/pharmacy can clear the facility standards indicated in the current medical and dispensing fee revisions, and whether you can independently cover the burden of future capital investments and system enhancements. If you have concerns about meeting these standards, or if you aim for future management efficiency and stability, we strongly recommend starting concrete discussions with experts regarding options such as business integration through M&A, group formation, or transitioning to a specific medical corporation, etc.

M&A Medical (CentralMedience Inc.) 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. We handle consultations with strict confidentiality. Free consultation here