Increasingly, hospitals are outsourcing their laboratory and pharmacy services to specialist companies to focus on core services. This allows labs to be run more efficiently with dedicated trained technicians and quality oversight. The document proposes outsourcing a mid-sized hospital's laboratory to Asian Health Alliance, a specialist lab company. Asian Health Alliance would provide equipment, 24/7 service, marketing to increase revenue, and quality controls. In return, the hospital would receive a share of net lab collection revenues and see lab revenues increase by 25-50% within three years.

1. Laboratory MedicineLaboratory Medicine
Out SourcingOut Sourcing
Tara Prasad MohapatraTara Prasad Mohapatra
CEOCEO
Asian Health AllianceAsian Health Alliance
Asian Health MeterAsian Health Meter

2. The TrendThe Trend
 Increasingly Hospitals Outsource Laboratory &Increasingly Hospitals Outsource Laboratory &
Pharmacy to Specialists Companies.Pharmacy to Specialists Companies.
 This trend is more visible in mid sized hospitalThis trend is more visible in mid sized hospital
 The younger generation doctors, practiceThe younger generation doctors, practice
evidence based medicine and hence theirevidence based medicine and hence their
treatment is heavily dependent on reliable andtreatment is heavily dependent on reliable and
quality diagnostics.quality diagnostics.
 Hospital focus on their core business on IP/OPHospital focus on their core business on IP/OP
and hence Lab services suffer.and hence Lab services suffer.

3. IssuesIssues
 In Hospital Labs face huge challenge to maintainIn Hospital Labs face huge challenge to maintain
speed & quality in Diagnostic Service :speed & quality in Diagnostic Service :
 Lack of Trained Technician and ensuring theirLack of Trained Technician and ensuring their
presence. Like Nurse, these staffs can quit abruptlypresence. Like Nurse, these staffs can quit abruptly
and bring the lab function to halt.and bring the lab function to halt.
 Regular monitoring of lab operation to ensureRegular monitoring of lab operation to ensure
quality- most hospital leave the lab under thequality- most hospital leave the lab under the
concerned technician without adequate supervision.concerned technician without adequate supervision.
 Lack of PathologistLack of Pathologist

4. IssuesIssues
 Cost of operating the Lab is a nightmare for midCost of operating the Lab is a nightmare for mid
size hospitalsize hospital
 Dependence on technicians on all lab affairsDependence on technicians on all lab affairs
 Pilferage of kits/expensive reagents- very commonPilferage of kits/expensive reagents- very common
in all hospitalsin all hospitals
 Loss of Revenue- outside samples are processedLoss of Revenue- outside samples are processed
without the knowledge of Hospital Managementwithout the knowledge of Hospital Management

5. IssuesIssues
 Revenue leaks :Revenue leaks :
 Doctors, due to various reasons, technical orDoctors, due to various reasons, technical or
otherwise, ask patients/hospital staff to get the testotherwise, ask patients/hospital staff to get the test
done by outside Labs.done by outside Labs.
 Enhancing Revenue :Enhancing Revenue :
 Though enhancing Lab revenue is not a significantThough enhancing Lab revenue is not a significant
revenue for Hospitals, proper marketing ofrevenue for Hospitals, proper marketing of
Diagnostic Services will increase Hospital IP/OPDiagnostic Services will increase Hospital IP/OP
footfalls. Most Hospitals CAN NOT do this well.footfalls. Most Hospitals CAN NOT do this well.

6. The SolutionThe Solution
 Leave the Lab service to specialists- the HospitalLeave the Lab service to specialists- the Hospital
service quality and clinical quality will improveservice quality and clinical quality will improve
 Lab outsourcing would improve the HospitalLab outsourcing would improve the Hospital
IP/OPIP/OP
 Hospital would gain from increased revenueHospital would gain from increased revenue
from non hospital dependent sources- Thisfrom non hospital dependent sources- This
would otherwise would not have been possible.would otherwise would not have been possible.

7. Scope of AHMScope of AHM
 Equipment:Equipment:
 Biochemistry AnalyzerBiochemistry Analyzer
 Hematology AnalyzerHematology Analyzer
 Blood Gas( Depending on ICU requirement)Blood Gas( Depending on ICU requirement)
 ElectrolytesElectrolytes
 Coagulation ReaderCoagulation Reader
 Other machines such as Microscopes/Ovens/etcOther machines such as Microscopes/Ovens/etc

8. Scope of AHMScope of AHM
 24x7 Service24x7 Service
 Test Reports under Pathology SupervisionTest Reports under Pathology Supervision
 Close Interaction with ConsultantsClose Interaction with Consultants
 Technicians, Marketing Staff (This would help theTechnicians, Marketing Staff (This would help the
Hospital too)Hospital too)
 Fully Integrated Information TechnologyFully Integrated Information Technology
 External & Internal Quality ControlExternal & Internal Quality Control
 Marketing and On site & Off Site Outreach ProgramMarketing and On site & Off Site Outreach Program
 Brochure/brand development materialsBrochure/brand development materials

9. Revenue Share & GoalRevenue Share & Goal
 The Hospital shall receive xx% of the netThe Hospital shall receive xx% of the net
collection of Laboratory Service :collection of Laboratory Service :
 Achieve the Lab Revenue to be increased by 25-Achieve the Lab Revenue to be increased by 25-
50% within Three Years.50% within Three Years.
 Lab Marketing Team and Hospital MarketingLab Marketing Team and Hospital Marketing
Team (We can take up the Hospital marketingTeam (We can take up the Hospital marketing
responsibility too) to work as one team.responsibility too) to work as one team.

10. Next StepsNext Steps
 AgreementAgreement
 Project PlanningProject Planning
 ExecutionExecution
 Lab Start UpLab Start Up
 Total Time frame – 2 months from the date ofTotal Time frame – 2 months from the date of
AgreementAgreement

11. For Further Details, please contactFor Further Details, please contact
Mr. Tara Prasad Mohapatra, CEO,Mr. Tara Prasad Mohapatra, CEO,
Asian Health Alliance, MobileAsian Health Alliance, Mobile
94499704639449970463