Total Cost of Ownership (TCO), a key component of Total Value of Ownership (TVO), refers to the total cost to manage a product or process, which covers equipment investments, maintenance costs, employee training, technology, and other direct and indirect expenses. Most medical laboratories are aware of the direct costs for diagnostic equipment and reagents, however, they often fail to consider the total operational costs, including labor costs, training expense, retesting, floor space, medical waste disposal, utility consumption, consumable usage, laboratory improvements, etc.
Kim Sung-ho, head of Korea Clinical Laboratoy (KCL), made a commitment to provide the most reliable medical services with the highest quality in the industry. Purchasing state-of-the-art medical equipment from global manufacturers was one of KCL's methods to maintain professionalism. In addition, unlike other companies in the healthcare sector, KCL adopted the concept of TCO, to obtain a leading position in the industry.
Read the article to learn how KCL partnered with Abbott to provide value to its patients, employees, and management, increasing their Total Value of Ownership.
TVO takes TCO one step further by widening the scope of value drivers beyond direct and indirect costs. See how three laboratories applied the TVO methodology and how it helped them reach their goals.
Hear from healthcare TCO expert Patrick Gontard on how to leverage TCO to improve your laboratory’s performance, and explore the impact of these improvements.Watch the Webinar
"I've learned lots of things from Abbott, and without their help, it would have been difficult to incorporate a TCO philosophy into our management process."
—Kim Sung-ho, Head of KCL
"The TCO-based approach greatly improves EBITDA (earnings before interest, taxes, depreciation, adn equipment amoritization), and strengthens the overall quality and measurement capability of a laboratory."
—Sung Ik-jung, CEO of the Dong-a Medical Foundation
Established in 1996, Korea Clinical Laboratory (KCL) is a research-oriented medical foundation, as well as a medical laboratory, which swiftly and accurately conducts various professional clinical tests specializing in diagnostic tests, diagnostic pathology tests, and molecular diagnostic tests.
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