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Jun 2, 2014In 2013, the CEO of this firm embarked on an innovative idea of bringing a clinical lab service close to the community. He started building labs in physicians' offices, at a cost that was less than outsourcing the procedures. The benefits also include much quicker turnaround time for the medical provider/s as well as the patient. He is also building individual reference labs. This investment is for each of the reference labs to be built.

As of March 2015, he already constructed 3 labs and another substantial lab is under construction. Projected revenue for each of the next 3 years for the reference labs increases dramatically from $1.1 million in 2017 to $1.9 million in 2018 to $2.7 million in 2018.

The CEO is responsible for licenses, compliance and testing using a turnkey operations approach. The doctors contract this firm to perform the following activities:
1. Operating the lab
2. Hiring lab personnel such as phlebotomist/s and lab technicians
3. Generating results of each sample
4. Performing general maintenance of lab equipment

Reference labs require supplies, such as re-agents. The amount and cost of supplies depend on the size of the POL. On an average, yearly cost of supplies per reference lab is about $xx,xxx. This firm is the wholesaler of supplies ordered by doctors.

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