Aiming for the Creation of the Community-based Integrated Care System Platform

What is the current situation in the domestic healthcare business?

Speaking of a period of change, what changes has the domestic healthcare business gone through so far?

HasegawaThe origins of our domestic healthcare business date back to the establishment of Tomod’s in 1993. At the time, Japan was enforcing a separation of roles in the medical field*, and the number of pharmacies was growing.
*The separation of medical prescription and drug dispensation so that drugs are prescribed by a doctor and dispensed by a pharmacist.

TokuhiroAt the time, in the U.S., the business model of dispensing prescription drugs as well as of selling over-the-counter drugs like cold medicine, medical devices, and daily necessities, was on the rise. Tomod’s was one of the first to apply that idea in Japan. It was a unique business model in Japan, and Mr. Yamaguchi and I have been involved with Tomod’s since 1994.

TokuhiroOn the other hand, Tomod’s has remained consistent in its mission of sustaining infrastructure for community healthcare. In the 1990s, separation of roles in the medical field led to the opening of many pharmacies to support community healthcare. Now, 30 years later, as the owners of those stores are thinking about retirement, the consolidation of 60,000 pharmacies nationwide is underway. At the rate Japan’s population is aging, a decline in the number of pharmacies could lead to a collapse of community healthcare. Tomod’s has a wealth of M&A experience, having grown through the acquisition and integration of American Pharmacy in 1997, Asahi Medix in 2000, Koei Drug in 2006, and Drugstore Katsumata in 2010, as well as 30 years of pharmacy know-how and a well-developed training system. Therefore, by taking over privately run pharmacies through M&A, we can improve the level of service and contribute to community healthcare.

YamaguchiAs an integrated trading company, Sumitomo Corporation’s strength lies in its people, and Tomod’s is no different. One of our greatest strengths is our pharmacists, who are strongly motivated and have a high level of knowledge in both dispensing and retailing, allowing them to closely attend to any customer needs.

YamaguchiIn the pharmacy business, we have already opened two stores with machines for automating dispensing work to improve efficiency and lower costs. Although it is still in the testing phase, we are looking to further expand this business.

TokuhiroIn terms of the community-based integrated care system, following the easing of regulations, we can expect to see a growing need for online medical care, medication guidance, and prescription drug delivery. Therefore, we are collaborating with Summit as well as Group companies such as J:COM and T-GAIA to develop services that can contribute to the improvement of local healthcare in both tangible and intangible areas.
At the same time, to realize the community-based integrated care system, Tomod’s will also need to evolve, for example, by increasing the number of stores that can offer health consultations. To achieve this, we are also striving to further enhance our employee training system.

HasegawaHealthcare needs are broad, and DX is essential. We believe that the role of the domestic healthcare business in SHIFT 2023 is to speed things up by making good use of our resources, including by expanding the business through M&As and developing new service offerings. Please look forward to more developments in the future.