Is It Worth Buying a Pharmacy for Sale Near a Hospital or Medical Plaza in Toronto?
July 23, 2025
Pharmacies located near hospitals or medical plazas in major urban centres like Toronto can seem like ideal acquisition targets. These locations often attract high foot traffic, consistent prescription volume, and referral potential from surrounding clinics.
However, not all pharmacies in medical zones guarantee long-term success. Buying a pharmacy for sale in Ontario—particularly one near a hospital—requires a careful review of local demand, operating costs, and competition. While proximity to healthcare hubs offers unique benefits, it also comes with specific challenges that must be evaluated on a case-by-case basis.
The Benefits of Being Near a Hospital or Medical Plaza
Purchasing a pharmacy for sale in Toronto near a major medical facility provides access to a built-in customer base. Physicians working in nearby clinics often refer patients to the most convenient pharmacy. This creates a steady stream of prescriptions and a consistent opportunity for follow-up sales, such as OTC products or chronic care items.
Another advantage is the potential for collaborative relationships with nearby healthcare providers. Pharmacies in these zones often benefit from direct communication with physicians, which improves service delivery and prescription accuracy.
Additionally, these locations are typically well-served by public transportation, making them easily accessible to a broad demographic, including seniors and patients with mobility issues.
Challenges You May Face in These Locations
While the volume may be attractive, pharmacies near hospitals often face higher rental rates and intense competition. A pharmacy for sale in Mississauga, next to a medical plaza, may be surrounded by multiple pharmacies, each vying for the same referral base.
Hospital-adjacent pharmacies also face operational stress, including high prescription turnaround expectations, frequent insurance plan verifications, and staff burnout due to high volumes. Without the right systems in place, these pressures can negatively affect performance and service quality.
Additionally, reliance on foot traffic from the hospital or clinic network can become a liability if facility operations change, such as physician relocations or specialist retirements.
What to Look for in a Pharmacy for Sale in a Medical Zone
When evaluating a pharmacy for sale in Ontario near a medical plaza, key performance indicators should include:
- Prescription volume trends over the last 3–5 years
- Existing relationships with local physicians or clinics
- Payor mix and reimbursement patterns
- Rent escalations or lease terms tied to commercial medical properties
- Competitive density within walking distance
It’s also critical to assess whether the pharmacy has differentiated itself—such as offering specialty compounding, home delivery, or extended hours—to remain competitive in high-volume zones.
How a Pharmacy Consultant Can Help You Evaluate the Opportunity
A pharmacy business consultant provides unbiased insight when reviewing listings near medical hubs. From financial due diligence to benchmarking and location risk analysis, consultants can help prospective buyers avoid costly assumptions.
They assess whether a pharmacy for sale in Toronto actually benefits from its location or merely advertises it. Consultants also help quantify the opportunity, adjust for risk, and guide buyers on financing and negotiation.
Case-by-Case: Not All Hospital-Adjacent Pharmacies Are Created Equal
While two pharmacies may both be within 100 meters of a hospital, their business models, margins, and risk profiles can differ substantially. A pharmacy for sale in Mississauga near a regional clinic may have a more stable long-term outlook than one in downtown Toronto facing high overhead and turnover.
Each listing must be evaluated based on more than location alone. Factors like lease agreements, staffing, ownership involvement, and local competition play a significant role in long-term success.
Make an Informed Decision with the Right Support
Buying a pharmacy for sale in Ontario near a hospital or medical plaza can be a rewarding move, but only when backed by a thorough evaluation and a sound acquisition plan.
Partner with EVCOR to assess the full picture, including financial viability, operational strength, and local market conditions. Connect with EVCOR today to evaluate whether that hospital-adjacent pharmacy is truly worth the investment.
