Korea Clinical Laboratory

Korea Clinical Laboratory Adopts Total Cost of Ownership and Sees Improvements in Sustainable Growth and Operational Efficiency

Why Is Total Cost of Ownership important in healthcare?

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.

Related Resources

Is Your Laboratory Demonstrating Its True Value? Using TVO To Position Your Laboratory As a Value Center

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.

Find Out More
 
Total Cost of Ownership: Improving Laboratory Operational Efficiency Webinar

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

Why Total Cost of Ownership Is Important for Differentiated Performance

 
Image of Kim Sung-ho from Korea Clinical Laboratory

True Partnership

"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

 
Image of Sung Ik-jung from Korea Clinical Laboratory

Measurable Benefits

 "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

 
Image of Cho Kyung-ja from Korea Clinical Laboratory

Personalized Solutions

"The TCO workshop hosted by Abbott was very impressive in that we learned how to improve our entire pre-analytical process... Abbott is our future."

—Cho Kyung-ja, Medical Director of KCL

About Korea Clinical Laboratory

Korea Clinical Laboratory Image

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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