BUSINESS PLAN

Medical Laboratory
PROJECT BACKGROUND
The total Indian healthcare sector is today INR 240 crores and it
is projected to grow to nearly INR 280 crores by 2015. The
diagnostic and pathology market is around two percent of the
total market. Indian diagnostic market has been growing fast, at
15-20 percent growth rate but there are lots of development
needs. The growth rate is estimated to remain the same for the
following ten years.
One of the major driving forces is the basic demographic change:
the migration to urban cities, with increasing number of people
having access to modern healthcare. Consequently, more and
more investments are being made in hospitals and clinical
laboratories. However, the rural sector is not to be forgotten. The
emerging industry structure is headed towards providing
healthcare services as an integrated comprehensive package
rather than the traditional concept of providing healthcare
infrastructure and reactive medical care. Among the middle and
high-income families in India there is a rapidly increasing health
consciousness which leads to high demand on preventive health
care.
 The diagnostic landscape in our country is highly fragmented.
Still largely populated by unorganized players, approximately
10 percent is constituted by organized entities. The diagnostic
lab business has traditionally been considered a high margin,
asset-intensive business. Thus, in an effort to match increasing
demand, large players have endeavoured to increase pan-
Indian presence, by building national networks, over the last
few years. Simultaneously, the market has witnessed
continuous mushrooming of foreign players as well as
standalone regional players. In addition, market leaders have
expressed intent to penetrate foreign markets such as the
Middle East and Sri Lanka, whose economies are growing on
par with India.
Growth has been pursued via a combination of the organic and
inorganic route. A majority of growth in the organized sector has
occurred through acquisitions and Brownfield projects, rather
than setting up green field laboratories.
Different approaches have included expansion via hub and
spoke models (one reference lab - many collection centres),
PPP initiatives, IPOs, and receiving funding from private
equities.
OBJECTIVE
To provide comprehensive , quality diagnostic
services at affordable prices.
To be a market leader in clinical diagnostics.

To take the Laboratory Services closure to Patients

& Physicians.
To create a partnering model with physicians to
provide the best services to patients.
 SWOT
Capital investment. analysis Creating a brand
Operational cost. image.
Uniqueness offered. Association with
Opportunity present. doctors/clinics
Competition Corporate tie ups.
present.
HUGE RIGROUS
INVESTMENT marketing
MARKET RESEARCH.!!!!

Find a gap in the market

Define ideal customer

Research the competitors

SWOT
VARIABLES:
Identify the demographic and economic trends in target area.
Population growth
Income levels
Average age
Occupation
Lifestyle
Number of hospitals and private practitioners
Competitor's analysis
Customers need analysis
Growth of other industries
Current insurance reimbursement rates
FIND A GAP IN THE MARKET
lack of sophisticated diagnostic centre.
Few centre providing all services under one roof.
Shortage of staff
Technicians not trained enough
Customer survey shows the need of high tech
diagnostic centre at one place.
Lack of infrastructure
More waiting time
Delayed reports
 DEFINE THE IDEAL CUSTOMER(TARGET CUSTOMERS
The time we spend on clearly defining the ideal customer is
never a waste.

Targeting:
Patients referred from general practitioner
Patients referred from the hospitals
Patients directly coming to the centre
Third party patients(insured)
Corporate (regular check ups)
Different age groups
Middle and higher income class patients
 TRY TO IDENTIFY CUSTOMERS MOTIVE:

WHY
YOU????

NEED KNOWLEDGE PREFRENCE JUSTIFY

Quality services
Accurate results
Time saving
Affordable price
Benefits to insured patients
Better packages to company patients
RESEARCH THE COMPETITORS:

Direct / Indirect Create a rough

competitors guide for each of
key competitor.
Equipments
Medical staff
Technicians Do a cost analysis
offered to market.
Value added services to
customers
Keep a track of any
Price structure major business
changes by these
Packages offered players.
Company tie ups
Insurance company tie Understand the
ups market share each
player enjoy.
SWOT ANALYSIS
New advance
technology and all test New in market.
under one roof. Should create more tie
Better service quality & ups with doctors and
quick reporting. corporates.
Partner/owned clinic Building brand will take
model time

STRENGTH WEAKNESS

OPPURTUNITIES THREAT
Rapid increasing
laboratory market. Cash flow
More corporate and
insurance company
tie ups.
WHAT ARE WE OFFERING
We offer a comprehensive clinical test for potential
patients under one roof. The tests include:
Clinical Pathology:- Laboratory chemical analysis
of bodily fluids, such as blood, urine
Biochemistry:- Testing of proteins, carbohydrates,
lipids, nucleic acids and other bio-molecules
Hematology:- Testing of blood cells, hemoglobin,
blood proteins in blood
Microbiology:- Analysis of microorganisms
including bacteria, viruses, fungi and parasites
 Value added services to customers:

Make the registration procedure simple

Online registration

keep the waiting time minimum

Have a credit card and payment facility.

Female attendant to handle female

patients.

Air conditioned waiting lounge

Drinking water, washroom facility

 long term: Achieve a break even point of the diagnostic centre in time
span of three years
short term: Increase the revenue 25% every year by increasing the
referrals.

Strategies:
Continue the advertisement

Compile a list of potential referrer including clinics, physicians,

hospitals,

Regular email newsletter to general practitioner and hospitals in

giving details of all services & unique selling proposition ,USP.

.
 Face to face meetings with potential referrers( most effective referral
building tactics) and provide them the thorough introduction of
diagnostic centre, including service line, clinical qualification, benefits
to patients.

Provide them information on insurance reimbursement and coverage

Leave the referral form there and direction to the centre.

Distribute other promotional material(Brochure etc.)

Incentives to the physician and hospital on referrals

By keeping the track on referrals made the source of maximum

referrals can be identified. Here we can categories our customers as.
 Have many corporate tie ups

Provide quick service and special facilities to corporate.

Better packages for corporate at competitive prices.

Continuous feed back from the customers and correct

the deficiencies.

Doctors should be keep updated new advancement at

the centre, and discounts and preventive check up
camps
BUSSINESS MODEL
Our business model will be HUB and SPOKE
model where we will have a Central Laboratory &
peripheral collection centers and smaller
laboratories.
We offer diagnostics at door step where instead of
patients coming to labs we will be available next to
them.
We will partner with the physicians so that we are
available with them during treatment or diagnosis.
We offer the most affordable and quick diagnosis
for patients so that there treatment is at the earliest.
The health insurance sector will also provide an
additional boost to the diagnostics sector, since with
an increase in the coverage provided, patients will not
have to pay for many tests out of pocket and doctors
will be able to prescribe the same, more liberally.
MARKET COMPETETION

Path Labs Number of labs Collection Centers

Lal Path 35 600

Metropolis 50 350
SRL labs 35 800
Primal Labs 104 300
PROJECT PLAN
The setup will be grouped under three heads
I. Collection center/Phlebotomy
II. Smaller labs
III. Central lab

The Capital Cost and Manpower plan vary based

on the type.
 We can finalize the project timelines and other
details on meeting.