Monday, September 16, 2013

Retail Pharmacy: Hub and Spoke model



Dr. Lal is a well-known name in North India. A friendly neighborhood pathologist has created a new category of retail path labs. To the uninitiated, Dr. Lal path labs attempt to provide standardized care in terms retail healthcare. They are present across residential pockets, usually 500sqft - 1500sqft area; enough to create a waiting room for patients, inventory management, technical staff.
It is quite organized in it’s layout, quite efficient in it’s actual layout (hardly any space is wasted.) Usually led by a nursing staff member, it has lab techs, cleaning crew, some assistants and to my best guess a manager. They serve primarily as collection centers an the processing happens at a central lab.
The phenomenal growth that Dr. Lal path labs has witnessed is testament to a change in consumer behavior, from personalized to standardized, in a developing economy such as India. While CVS exists and Walmart may have it’s own health care staff through flu vaccinations, the choice there seems to be driven primarily by convenience and lower prices. Dr. Lal Path labs, is a more luxurious service, relatively of course, to the neighborhood pathologist. It is efficient, convenient and worth a slight premium since it is “standardized” and is a brand.To me, DaVita Dialysis is the closest format of retail chain of healthcare in the US.


What remains to be seen is whether, this format of retail healthcare, will be propagated in other areas of healthcare in a transforming healthcare landscape in India.

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