India's Diagnostics Industry
Lab Chains and Hub-and-Spoke
How lab chains use a hub-and-spoke model with collection centres feeding samples to central labs, gaining scale economies over standalone labs.
Lab chains use a hub-and-spoke model.
How it works
- Collection centres (spokes) take samples.
- Samples travel to regional or central labs (hubs).
- Hubs run automated machines at scale.
Scale economies
Big hubs run many tests cheaply, lowering cost per test.
Logistics
Samples must reach labs quickly at the right temperature.
Franchise
Many collection centres are franchised to local partners.
Thyrocare
Thyrocare built a low-price model with a central lab in Navi Mumbai receiving samples by air from across India.
The overnight sample
A blood sample taken in a small town reaches a central lab overnight, with results online the next day.
Thinking every lab tests samples on site
Chains send them to central hubs.
Key takeaways
- Chains use hub-and-spoke.
- Hubs gain scale economies.
- Logistics is critical.
- Thyrocare used a central lab model.
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