by

Bego Sepop(MIMLS:M1791, PAM)

Commercial Biochemistry Laboratory Services in Sarawak Experience and Challenges

SARAWAK

EXPERIENCE IN SARAWAK MARKET

Challenging Industry• One of the

most challenging and competetive industry in the region.

Commercial Medical Laboratories and Collection Centres in the Region

1. Gribbles Pathology (M) Sdn Bhd (Kuching, Sibu, Bintulu and Miri) 2. Pathlab (Kuching, Sibu, Bintulu and Miri) 3. BP Lab (Kuching, Sibu, Bintulu and Miri) 4. Quantum Lab (Kuching, Sibu, Bintulu and Miri) 5. Advanced Pathology (M) Sdn Bhd (Kuching) 6. Clinipath (Kuching)7. Gnosis Lab (Kuching, Sibu, Bintulu and Miri)8. Navipath Laboratory (Kuching, Sibu and Miri)9. Advanced Laboratory (Kuching, Miri) 10.Sri Aman-PMG Lab and Sarikei-MY Lab11.Medi Lab (Kuching) 12.MD Specialist Pathology Laboratory

Commercial Laboratories in Sarawak

Commercial Laboratories in Sarawak

Commercial Laboratories in Sarawak

• My Lab Diagnostics Sdn Bhd in Sarikei. (PMG Lab )

20.00%

18.00%

14.00%13.50%

12.50%

6.00%

6.00%

5.50% 2.00%

2.00%0.50%

Private Laboratory:

-Market Shares - Approx-Competitive Industry

-'Survival of the Fittest'

Gribbles

Pathlab

Quantum Lab

BP Lab

Gnosis Lab

Advanced Path

Navipath

Clinipath

PMG/MY Lab

AD Lab

Medi Lab

Others: In-house - Laboratory Normah Medical

Specialist Centre

Timberland Medical Specialist Centre,

Borneo Medical Centre -Kuching

Kuching Specialist Centre - Lablink

Others: Private Hospital Base Medical Laboratory

• Miri City Medical Centre

• Columbia Asia Hospital - Miri

(In house lab - Quantum)

Others: Private Hospital Base Medical Laboratory

Bintulu Medical Centre Columbia Asia Hospital - Bintulu(In-house lab: Gribbles Pathology)

Others: Private Hospital Base Medical Laboratory

Rejang Medical Centre - Sibu

Government Hospital Laboratories

All government hospitals throughout Sarawak

Laboratory services under “JKNS”

Competitive Market: Methods and Strategies

• Setting-up New Centre• Logistics• Service customers/clients

in the locality

Competitive Market: Methods and Strategies

Technical Staff Undergoing Training

Phlebotomists attending phlebotomy courses.

• Phlebotomists attending phlebotomy courses.

• (Upgrading)

Improvement in Laboratory Services

Phlebotomy:

Staff improving their skill (Practical Training)

Customer Service Improvement

• Trained liaisons officer

• Patient centre, • Corporate clients, • Medical specialists

and general practitioners of private and government hospitals.

Improvement in Laboratory ServicesOn-line Reporting -Webmail On-line results to Dr/Clients

Improvement in Laboratory ServicesFast turn around time for common tests - fully automated analyzers(General Biochem - Small Lab 480 tests/hr)

Fully automated - Fast turn around time (Immunoassay) -Small Lab (100 tests/hour)

Improvement in Sales (Methods and Strategies)Wide Range of Tests. Wide Range of Specialized

Tests

Improvement in Sales (Methods and Strategies)

Specialized Tests by PCR Inviting Professionals in Resolving Certain Technical Issues

Improvement in Sales: Managerial Meeting

Laboratory managers and the marketing managers are required to give regular operation and marketing update on daily activities. Examples are: customer's feedback,

satisfaction, complaints, recommendations, competitors activities and other operation matters.

INCREASE SALES: METHODS AND STRATEGIESEngaged in Health Awareness Program

Staff Participating in RCPA -Enhance knowledge in Pathology Industry (Quality Assurance Program) - Australia

INCREASE SALES: METHODS AND STRATEGIES

Require Disciplined and Committed Staff

Daily Operation and Marketing Updates

Improvement in SalesMarket knowledge and intelligence: Monitor competitors activities/threats in

the market to key customers and vendors, through promotions or discounts, products, gifts and other treats.

Developments - what has happened? Trends - what is happening? Outlook - what is likely to happen? Strategies - how to decide for the

future?

Marketing Update on Daily Activities - Competitors

Improvement in Sales: Patient Episode Chart

Monitor Growth -through patient episode chart.Customers

gain and loss. (Daily, Weekly and Monthly)

28592689

289030893120

2950

35303310

3420

3120

3380

2850

0

500

1000

1500

2000

2500

3000

3500

4000

Jan Feb March April

Patient Episode Chart

2015 2016 2017

Improvement in Sales: Analysis of Data

• Monitoringrevenue -generated through customer segment.

82,000

22,345

15,388

28,450

18,320

74,000

19,32014,440

25,280

16,450

86,000

26,450

19,750

29,990

21,245

88,250

32,320

20,450

28,320

22,145

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

GP Corporate Gov Hosp Pvt Hosp Self-Referrals

Revenue Versus Customer Segment

Jan Feb March April

Improvement in Sales: Debt Management

Debt management through Ageing List

MKT

Sum of Age 30d

Sum of Age 60d

Sum of Age 90d

Sum of Age 120d

Sum of Age 150d

Sum of Age 180d

Sum of Age >180d

Sum of Unalloc.Paym

Sum of Line Total

Sum of Inv.Cnt

Sum of Net paym %

Sum of OS >90days %

A1 2,185 2,435 1,082 738 921 909 49,672 (32,618) 25,325 42 (1,478) -6% 19,622 77%

A2 134,436 163,186 83,863 84,201 46,236 19,858 126,630 (16,204) 642,206 585 (29,046) -5% 260,721 41%

B1 9,233 22,404 14,400 69 - 134 141 (21) 46,360 7 (15,709) -34% 323 1%

B2 28,986 39,593 18,578 5,198 238 12,577 116,098 (4,997) 216,270 173 (16,189) -7% 129,113 60%

C1 9,941 11,647 15,432 1,344 4,020 1,114 19,683 (3,721) 59,460 36 (14,473) -24% 22,439 38%

C2 103,740 108,621 56,808 45,933 24,740 20,365 95,077 (7,787) 447,498 588 (47,312) -11% 178,329 40%

MANAGING PROFIT AND LOSS

MANAGING CALIBRATOR/CONTROL COSTS

MANAGING REAGENT COST

MANAGING REAGENT COST

COMMERCIAL PATHOLOGY CRISIS: PRICE WAR

• The worst current scenario and crisis affecting all private medical laboratories; “THE PRICE WAR”.

• Started in 1996, with the influx and emergence of foreign laboratory investments, laboratory tests has gone down drastically until today.

• Laboratory tests in Malaysia - thecheapest in the Asian region.

CONSEQUENCES OF “PRICE WAR”

CONSEQUENCES OF “PRICE WAR”

Closure of many laboratories.Difficulties in raising prices as everyone try to maintain

their customers. Benefit to the doctors - Agony to the pathology industry

whereby they will have to work at an additional time and cost to make a negligible amount of profit.Walk-in patients - accepted by most laboratory.Walk-in patients pay an additional cost - reduce operating

costs.Increase in corporate work - No doctor referrals.

Economic Woes

• Today, this unhealthy competition has resulted to many laboratories suffering huge losses due to high operation cost with negligible or no profit margin.

Benefitting the Doctors

• In order to reduce the economic woes while taking the opportunity in making larger profits

• Some consider it a benefit for their patients by reducing the lab test charges.

Benefitting the Doctors

• Some clinicians are searching for the cheapest laboratory tests/packages.

• Some even to the point of requesting for free of charged (FOC) on certain tests.

Staff: Retrenched and Unemployed

Therefore, to counter this difficulties, many laboratory staff are: • laid off, • some been forced to resigned, • some were never confirmed until they quit their

posts, • others with salary deductions.

Threat: Running at a Loss

• To rescue this vitally important industry, this unhealthy practice (Price War) has to be stopped. The Pathology Act has to be clearly defined to strictly enforced and to ensure that the tests charges are to be standardized among the different laboratories or as per test methodology.

Closure of Branches

• Today, this unhealthy competition has resulted to many laboratories suffering huge losses due to high operation cost with negligible or no profit margin.

Cost Reductions:

• Resorting to third party reagent,

• Commissioning low quality analyzers.

• Recycle certain non-critical items. eg. plastic carrier bags.

• Engaging unqualified staff

Education on Quality ProductsQuality Products for Better Results

• End user has to be educated on the importance of quality products and the results produced.

• Confidence by the clnicians in managing patients illness.

Quality Analyzer with Better Performance

Recommendations To save the industry, there must be “PRICE

REGULATION, CONTROL AND MONITORING”.

What is the Role of “MIMLS” in the Commercial Biochemistry Laboratory in Sarawak.

Need to Rescue the Commercial Biochemistry Laboratory from the “Unhealthy Practices such as Price War”.

THANK YOU