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FREE BLOG Why healthcare services needs to think about total cost of ownership

Healthcare service operators of all sorts have failed, at least until very recently, to measure and manage the total cost of ownership. That is odd because TCO models, in which you measure the real costs of operating, can massively improve EBITDA, particularly for capital equipment. It can also be adapted to measure and improve entire facilities - see our interview with Patrick Gontard below. He claims that TCO in labs can grow EBITDA by 10-15 percentage points. Similar gains can probably be made in imaging, for instance.
March 13, 2015

Interview: Patrick Gontard, CEO, Citilab, CEO and Founder, Gontard & Cie

Total cost of ownership (TCO) models have increased EBITDA margins by 10-15 percentage points in the lab sector and can be used in any area of healthcare, says Gontard. A Swiss economist, he has perfected his model over 15 years, working first for Viollier, the second largest Swiss lab group, then at Integrated Diagnostics in Egypt and now at Citilab probably the second largest lab group in Russia. Gontard is speaking on TCO at Healthcare Europa 2015 on April 28 in London.
March 13, 2015

How POCT can massively improve efficiency in acute care

Point of Care Testing can massively reduce hospital stay costs, according to a recent UK pilot. Early signs suggest diagnostics will grow as a sector and POCT will come to dominate a limited share of the market. But could the established labs make use of innovations in POCT and are there unforeseen consequences for the rest of healthcare services? Last week we talked to consultants and operators on either side of the POCT debate. Now we look at what effect POCT is having on the wards, talk to manufacturers and hear from Eric Souetre, founder and major shareholder of Labco.
March 12, 2015

French private hospitals worried over tariffs and ban on excess fees

The French government announced private clinics would see a 2.5% decrease in tariffs, against a 1% decrease for public hospitals. Lamine Gharbi, president of the Fédération de l’Hôspitalisation Privée (FHP), and Yves Noël, the president of Santé-Cite group, explain the concerns of private clinics.
March 12, 2015

Sweden’s dental market may consolidate despite pro-Praktikertjänst ruling

The Swedish Tax Authority (STA) has dropped its case against Sweden’s largest primary care and dentistry firm Praktikertjänst over under-priced shares. Sweden’s private sector is still held back by a law placing high taxes on dividends for companies with more than 20 shareholders. We talk to Praktikertjänst CEO, Johan Fredriksson and Per Rehnberg, CEO of dental organisation Colosseum Smile, about the impact of the law on Sweden’s dental market and Praktikertjänst’s future.
March 12, 2015

Could social franchising improve Africa’s private sector?

Social franchising – applying the principles of commercial franchising to promote social benefit rather than profit – is an increasingly popular model for health services in the Developing World. Joyce Wanderi, COO of Population Services Kenya, believes that social franchising can help organise the low-income private sector, combatting the common issues of underdeveloped infrastructure, a shortage of skilled health workers, lack of funding, weak procurement and distribution chains and ultimately, highly varied quality between providers.
March 11, 2015

Indonesia’s Mitra Keluarga Karyasehat valued at $1.89bn

Indonesian hospital chain PT Mitra Keluarga Karyasehat has raised Rp4.45 trillion ($343 million) from its initial public offering with shares prices at Rp17,000, near the top of the Rp14,500 to Rp18,000 indicative range.
March 11, 2015

Is IDH rethinking its IPO?

Egyptian lab group, Integrated Diagnostics holdings, could be reconsidering the structure of its IPO. IDH sold a 21% stake to an unnamed European investor before Christmas said well-placed sources.
March 11, 2015
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