Client Background

A leading healthcare group in the Philippines, operating a network of dialysis centers and hospitals, sought to strengthen its position in the rapidly growing dialysis and medical consumables market. Facing increasing demand for dialysis services due to a rise in chronic kidney disease (CKD) cases, the group needed a strategic roadmap to:

1. Expand its regional footprint effectively.
2. Optimize costs and improve operational efficiency.
3. Compete in a market where government regulations and patient affordability pose significant challenges.

Problem Statement

The client struggled with:

• Unbalanced regional distribution of dialysis centers, resulting in missed opportunities in underserved areas.
• High operational costs due to inefficient staff-to-patient ratios and underutilized machines.
• Limited understanding of the competitive landscape, including pricing benchmarks and patient demographics.
• Navigating a complex regulatory environment for licensing and reimbursement.

The client partnered with Ken Research to address these challenges and create a comprehensive expansion and optimization strategy.

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Ken Research’s Role: Objectives and Key Results

Ken Research adopted an OKR Framework to solve the client’s challenges, with the following objectives and measurable results:

Objective 1: Enhance Market Understanding and Forecasting

Key Results Achieved:

• Market Size Analysis: Ken Research identified a PHP 15 billion market opportunity in dialysis services, projected to grow at a CAGR of 8.5% from 2024 to 2030.
• CKD Segmentation: The study segmented CKD patients by disease stage (I-V) and demographics, revealing that 45% of patients were concentrated in NCR and Davao regions.
• Dialysis Patient Demographics: Insights showed that 60% of dialysis patients were above 50 years of age, with middle-income groups representing the largest segment.

Objective 2: Optimize Infrastructure and Competitive Positioning

Key Results Achieved:

• Infrastructure Analysis:
  • Evaluated regional distribution of centers and recommended expansion into Regions I, VIII, and XI, with underserved populations and low competition.
  • Provided benchmarks for machine capacity utilization, showing an industry average of 70% utilization, while the client’s centers averaged only 50%.
• Service Pricing:
  • Competitive benchmarking revealed that the client could reduce treatment costs by 10-15% through improved consumables sourcing.
  • Identified the need for tiered pricing models to address affordability challenges in low-income regions.

Objective 3: Improve Financial and Operational Efficiency

Key Results Achieved:

• Operational Metrics:
  • Optimized staff-to-patient ratios from 1:5 to 1:3, improving service delivery and reducing patient wait times by 30%.
  • Increased machine utilization to 65% within six months by reallocating resources and introducing flexible patient schedules.
• Cost Optimization:
  • Reduced overall operational costs by 20% through streamlined consumable procurement and machine maintenance partnerships.
• Performance Benchmarking:
  • Analyzed ROI of existing centers, highlighting a potential 30% increase in profitability by implementing the recommended changes.

Objective 4: Navigate Regulatory Challenges and Expand Strategically

Key Results Achieved:

• Regulatory Compliance: Assisted the client in meeting licensing requirements for three new centers in underserved regions, expediting approvals by 40%.
• Subsidy Utilization: Identified government reimbursement programs that could offset up to 50% of dialysis costs for low-income patients.
• Expansion Roadmap:
  • Delivered a detailed opportunity matrix, prioritizing expansion into Region VIII and ARMM, which collectively represented 25% of unmet demand.

Impactful Solutions Delivered by Ken Research

Ken Research’s data-driven approach, leveraging both primary and secondary research, provided the client with:

1. Actionable insights to strategically expand their network into high-demand regions.
2. Operational efficiency improvements, increasing profitability and enhancing patient experience.
3. A clear roadmap to navigate regulatory complexities and leverage government subsidies.

These interventions resulted in a 25% increase in patient footfall across the client’s centers within the first year of implementation and an 18% improvement in overall revenue.

Conclusion

Ken Research empowered the client to unlock growth potential in the dialysis market by addressing their operational inefficiencies and regional distribution challenges. The tailored strategy ensured the client remained competitive in a dynamic market while enhancing access to life-saving services for underserved communities.