 |
| National Reference Laboratory at Rohini, Delhi |
The diagnostic laboratory services are responsible for 70 per cent of all clinical decisions and are critical to delivery of quality and evidence-based modern medical care. Indian diagnostic services market is currently growing at a healthy rate of 20 per cent annually and is pegged at approximately $3.4 billion in size (Source: PwC). However, in a highly fragmented sector, comprising 50,000-100,000 path labs nationwide, one name that stands out as an undisputed leader is that of Dr Lal PathLabs (LPL). Established in 1949, LPL today is the largest and most reputed diagnostic service provider in the country. It has a proven track record of over six decades for strict adherence to international standards and is recognised as a centre of innovation and a premier clinical pathology laboratory in Asia.
What makes this story immensely successful and gives it a competitive edge that others can only envy and wish to emulate? To answer this question, one has to examine the visionary leadership, strategic management, professional excellence, unique business model, value for customers and other key attributes of LPL.
A glimpse into the history
 |
| The author interacting with Dr Arvind Lal |
It was in 1949, when the nation was still recovering from the trauma of partition that the late Dr (Major) SK Lal migrated from Rawalpindi to Delhi and laid the foundation of Dr Lal PathLabs at ‘Eskay House’. Laboratory services as a distinct entity in healthcare ecosystem were unheard of in those days. Trained at the Cook County Hospital, Chicago, US, he was one of a few eminent pathologists of his times, and equipped with great expertise and far sighted vision, Dr Lal sowed the seeds of an organisation that was destined to become Asia’s premier testing labs.
The strategy
At the core of LPL strategy is its commitment to provide the best professional diagnostic services through a unique network of laboratories and supporting units, integrated supply chain and leveraging cutting-edge technology to seamlessly run its operations with a factory like efficiency and productivity. It has incorporated highest standards of quality, professional ethics and customer centricity as a part of its organisational DNA. LPL is endowed with great strategic vision that thinks innovatively and plans smartly for the future in a way that rivals cannot anticipate its adroit moves. Thus, LPL has consistently maintained undisputed leadership in terms of its size, market share and revenues in the diagnostic services arena.
Business model – size does matter
 |
| Lab technicians working on sophisticated equipment |
Today, LPL has a network of over 150 labs, it has established over 2,000 sample collection centres, have additional 3,000 pick-up-points (‘hub and spoke model’) and tests nearly 30,000 patients a day thereby serving 10 million customers annually nationwide.
It offers the widest test menu and has a pan-India presence in all important cities and towns in the form of state-of-the-art laboratories and patient service centres. Its employee strength is over 3,000 professionals which include 550 technical and 250 marketing staff. In 1995, LPL got corporatised by creating a private limited company from the earlier partnership.
LPL market value has grown nearly 20 times since VC firm West Bridge Capital Partners invested Rs 28 crores ($ 6.5 million) by taking a minority stake in LPL in 2005.
Men leading the organisation
 |
| The state–of-the-art data centre at National Reference Laboratory |
In 1977, Brigadier Dr Arvind Lal, took over the reins of LPL and carried forward his late father’s legacy. He received his graduate and post-graduate medical education from the prestigious AFMC, Pune.
Under his able guidance and dynamic leadership, LPL has become one of the most reputed laboratories in Asia, having many firsts to its credit. He has revolutionised laboratory medicine by introducing the maximum number of new tests, equipment and embracing ICT systems into its operations.
Member of many expert and advisory bodies constituted by the central and the state governments, Dr Lal is credited with having forged the first public private partnership (PPP) in the field of laboratory testing with the Government of Tripura since 2004; Gujarat in 2011 and now with Chhattisgarh. Wearing many hats, Dr Lal is also the Chairman of the Healthcare Committee of the PHD Chamber of Commerce and the Founder Treasurer of the newly formed Healthcare Federation of India (NATHEALTH) – an association of eminent Healthcare stakeholders on the lines of NASSCOM. He is also an active member of National Healthcare Committees of CII, FICCI and ASSOCHAM and has played a pivotal role in flying the Indian healthcare flag high internationally.
In 2001, Dr Lal was appointed as the Honorary Physician to the President of India. He has also been serving as a pathologist to many present and past senior dignitaries. LPL is the nodal laboratory, testing the largest number of government employees in India from CGHS, ECHS, Ministry of Railways, Delhi Government and many others.
Conferred with the Padma Shri, Brig Lal has also been granted an Honorary Brigadier’s rank in the Armed Forces Medical Services by the President of India. For the successful management of LPL, in 2005 he created a team of professionals and administrators led by Dr Om Manchanda, an alumnus of IIM-A.
Rohini – The flagship lab
 |
| Dr (Major) SK Lal with former President Dr S Radhakrishnan |
Spread across an area of 85,000 sq ft over six floors, the National Reference Lab at Rohini, Delhi, is equipped with state-of-the-art technology and best professionals in the industry that meet international standards and deliver world class diagnostic services. NRL provides a one-stop solution for all routine and sophisticated tests and serves as a scintillating example of India’s growing prowess in launching Indian healthcare industry at a global pedestal. It is the biggest lab in Asia and its histopathology department receives nearly 500 biopsies a day – highest work-load for any Indian Lab.
This lab is equipped with a centralised distribution facility to all departments with bar coding, unique ID for each sample and bidirectional instrument interfacing. This ensures error free intra lab tracking system with high throughput by means of an automated pneumatic tube system.
Dr Lal PathLabs –Where quality is the leitmotif, a recurrent theme
 |
| Dr A Lal receiving Padma Shri award from Ex-President Pratibha Patil |
LPL subscribes to the mantra of ‘Total Quality Management’ that practices, “get it right, the first time, and always” as an integral part of its organisational philosophy.
With strict adherence to international standards, biosafety norms and benchmarks, it is not a surprise that LPL has the distinction of running 12 accredited laboratories and 15 applicant labs in India. It was the first Indian lab to be awarded the accreditation from National Accreditation Board for Testing and Calibration Laboratories (NABL), Department of Science and Technology, GoI. It is also the first lab to be accredited by the international gold standard accrediting body – College of American Pathologists (CAP) which has awarded Dr Vandana Lal, Executive Director, an International Fellowship. LPL has also been awarded the prestigious ISO 9001:2008 from British Standards Institution (BSI) .No wonder that several premier hospitals in smaller towns repose great trust in LPL’s name and prefer to outsource their pathology services to LPL.
Customer-centric services
It was in 1980, when Dr Arvind Lal met an elderly diabetic gentleman coming thrice to the lab from a distance– first for fasting glucose, then for post prandial and lastly to collect the report in the evening. Moved by the discomfort caused to such patients, he decided to provide lab services at the door steps of patients by introducing collection centres for the first time in the healthcare industry. Since then, LPL has initiated a slew of customer-centric and patient-friendly initiatives like home collection of samples and delivery of reports at door step, online access of tests and reports. With a view to provide complete diagnostic services, LPL has also added radiology and cardiac evaluation tests to its product portfolio, for early detection of lifestyle diseases.
Leveraging technology and managing supply chain
 |
| Dr A Lal being granted the Hony Brigadier’s rank as Dr Vandana and Dr Archana Lal look on |
A highly advanced logistics system supports the wide network of labs and collection centres. LPL introduced the path breaking laboratory information system that ensures 100 per cent accuracy and use of web-enabled technologies for remote registration and printing of reports. The latest T-3 level Data Centre facility at Rohini is designed and maintained by IBM. Sophisticated softwares like Microsoft Axapta, Abbott StarLims with HL-7 are deployed on a mission critical Application Server that connects the 150 labs spread nationwide. The LIMS SW also enabled interoperability of diagnostic instruments to the central server, thus establishing a bi-directional interface for the first time in an Indian lab in 1999. This SW also planted the seeds of establishing country wide network of satellite labs and collection centres.
In addition, the 21 CFR part-II, Compliance Document Management System ensures secrecy and confidentiality of sensitive patient information and audit trail of all transactions. It also facilitates speedy registration of patients and transmission of data at the destination labs much before the sample reaches. LPL’s Kanpur satellite lab was the first lab in the world to use satellite-based communication with VSAT and central server in Delhi for real time and on-line running of diagnostic machines. LPL has also an effective disaster recovery mechanism in place.
Research and development-fuelling growth and innovation
To fuel its growth and drive its quality services, LPL has a dedicated unit for R&D and allocates two per cent of its overall budget to research activities. The R&D unit reinforces the organisational philosophy by continuously innovating and developing cutting-edge technologies to achieve diagnostic accuracy, particularly in area of molecular diagnostics. LPL also operates a dedicated clinical research services unit servicing several pharmaceutical companies. The organisation’s R&D unit is recognised by the Dept of S&T, GoI with the aim to provide highly specialised tests at an affordable cost to the public at large.
Spearheaded by Dr Vandana Lal, this unit has done India proud by developing highly sophisticated tests in molecular diagnostics like the Real Time PCR for HIV Viral Load Studies, Tuberculosis, Genotyping for Hepatitis C Virus, Swine ‘Flu test, BCR ABL, PML RARA, HPV, JAK 2, Chimerism for Bone Marrow Transplants, GenExpert for TB and Resistance and KRAS Mutation CODON 12,13 etc. Sophisticated Chromosome Analysis, Immuno suppressant Drug Monitoring by LC-MS/MS, Leukemia Translocations, HE4 and ROMA (Risk of Ovarian Malignancy Algorithm) have been also introduced by LPL
In line with its philosophy of achieving growth through learning and knowledge, LPL plans to set up an integrated pathology institute, awarding DNB degrees, Fellowship in Laboratory Medicine and MLT diploma. The facility already boasts of well-equipped library, eminent faculty, video conferencing facilities and specialised “penta head microscope” – a state-of-the-art tool for histopathology teaching.
Milestones, achievements and awards
LPL has a consistent performance track record of pioneering work in the field of diagnostics. It has an impressive list of firsts to its credit since its early days in the field of test introductions, bringing new technologies from the West and use of world class methods for phlebotomy and pioneering the franchisee model for sample collection and report delivery. In recognition of its distinguished service spanning six decades, LPL has been recipient of many awards and accolades. Recently in 2012, it has been conferred with: eIndia award in the category – Best Use of Technology by a Diagnostic Service Provider, Franchise India excellence award in hall of fame category, Microsoft Customer Spotlight, Computerworld Honors Laureate Program, Frost and Sullivan 4th Annual India Healthcare Excellence Award, and Diagnostic Service Provider Company of the Year.
Future plans
Not to rest on its past laurels, LPL aims to reach out to every nook and corner of India with their world-class diagnostic services. Keeping sight of its mission, the company has charted a five-year plan which includes continuing to grow at a CAGR of 35 per cent, expanding through organic and inorganic means, and entering new international markets.
Key elements of the plan are:
- Expansion into under served markets
- Strategic alliances with acquisition/mergers of existing players and PPPs with State Governments
- Imaging and cardiology centres
- Launch of IPO to finance above projects
Over 60 years of nurturing trust
During the last six decades (1949 – 2013) of its operations, Dr Lal PathLabs has become synonymous with trust and reliance in the field of pathology services. LPL has ensured to provide sophisticated lab services of proven clinical value with accuracy, speed to the people in remote areas at an affordable cost. Treasuring this trust, it has emerged as one of the highest accredited laboratories in the country, delighting over 10 million customers per year. Banking on state-of-the-art technology and highly skilled personnel, it shall continue to achieve excellence in diagnostic medicine and services to become India’s most valued company to patients, customers, business partners and the communities it serves. Thus, LPL has been able to weave a great success story that is truly Indian and worth emulating and replicating as a benchmark by healthcare organisations
- Advertisement -
