BCG Case Interview Example: Product Launch in Healthcare

00:34:30
https://www.youtube.com/watch?v=T6a4MFvHgbM

概要

TLDRInterviul de caz se concentrează pe Pudong Hospital, un spital din China care analizează oportunitatea de a aduce serviciile de patologie în interior. Consultantul evaluează aspecte strategice, financiare și riscuri, concluzionând că investiția este profitabilă, având potențial de a îmbunătăți imaginea spitalului și de a atrage mai mulți pacienți. Se discută despre structura costurilor, numărul de pacienți și impactul asupra veniturilor, precum și despre relațiile cu partenerii actuali și integrarea proceselor. Consultantul recomandă avansarea cu investiția datorită profitabilității și a riscurilor minime asociate.

収穫

  • 🏥 Pudong Hospital oferă servicii medicale variate.
  • 💰 Obiectivul financiar este de 30 milioane dolari în 5 ani.
  • 📊 Aducerea serviciilor de patologie în interior poate genera 95 milioane dolari profit.
  • 🤝 Relațiile cu partenerii actuali sunt un risc minor.
  • 🔍 Integrarea proceselor este fezabilă datorită experienței anterioare.
  • 📈 Se așteaptă un număr suplimentar de 10.000 pacienți anual.
  • 🌟 Îmbunătățirea imaginii spitalului este un beneficiu major.
  • 📉 Costul estimat al investiției este de 5 milioane dolari per spital.
  • 🩺 Serviciile de patologie vizează pacienții cu cancer.
  • 🔑 Continuarea îngrijirii este esențială pentru satisfacția pacienților.

タイムライン

  • 00:00:00 - 00:05:00

    Clientul este Spitalul Pudong din China, care oferă o gamă largă de servicii medicale, dar are lacune în servicii precum patologia. Spitalul explorează posibilitatea de a aduce serviciile de patologie în interior, în loc să colaboreze cu un partener extern, pentru a oferi pacienților cu cancer un pachet complet de servicii.

  • 00:05:00 - 00:10:00

    Spitalul Pudong are 2500 de paturi și 20 de spitale, având ca obiectiv generarea a 30 de milioane de dolari profit în următorii cinci ani. Este important să se evalueze dacă integrarea serviciilor de patologie este o direcție strategică corectă și dacă spitalul are capacitatea de a implementa aceste servicii.

  • 00:10:00 - 00:15:00

    Framework-ul candidatului include evaluarea potrivirii strategice, analiza financiară și identificarea riscurilor. Candidatul va analiza dacă integrarea serviciilor de patologie se aliniază cu viziunea spitalului și dacă există suficiente resurse interne pentru a susține această inițiativă.

  • 00:15:00 - 00:20:00

    Candidatul a identificat că serviciile de patologie sunt esențiale în diagnosticul cancerului și că integrarea acestora ar putea îmbunătăți imaginea spitalului. De asemenea, a discutat despre impactul asupra pacienților și despre cum ar putea crește numărul de pacienți care aleg spitalul pentru tratamentele de cancer.

  • 00:20:00 - 00:25:00

    Candidatul a analizat competiția, identificând spitalele care oferă deja servicii de patologie și laboratoarele private. A concluzionat că spitalul ar putea obține un avantaj competitiv prin oferirea de servicii integrate, ceea ce ar putea îmbunătăți satisfacția pacienților.

  • 00:25:00 - 00:34:30

    În analiza financiară, candidatul a estimat un profit suplimentar de 145 de milioane de dolari în următorii cinci ani, după deducerea costurilor de investiție. A concluzionat că spitalul poate susține această investiție și a identificat riscurile asociate, inclusiv relațiile cu partenerii actuali și integrarea proceselor.

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ビデオQ&A

  • Ce servicii oferă Pudong Hospital?

    Pudong Hospital oferă o gamă largă de servicii medicale, inclusiv chirurgie și consultanță în 15 departamente medicale.

  • Care este obiectivul financiar al spitalului pentru investiția în serviciile de patologie?

    Spitalul își propune să genereze 30 de milioane de dolari profit în total în următorii cinci ani.

  • Câte spitale face parte din grupul Pudong?

    Grupul Pudong are 20 de spitale.

  • Câți pacienți anual vizitează Pudong Hospital?

    Pudong Hospital are aproximativ 800.000 de pacienți anual.

  • Care este impactul aducerii serviciilor de patologie în interior?

    Aducerea serviciilor de patologie în interior ar îmbunătăți continuitatea îngrijirii și ar reduce stresul pacienților.

  • Ce riscuri sunt asociate cu această investiție?

    Riscurile includ relațiile cu partenerii actuali, integrarea proceselor și sustenabilitatea cererii.

  • Care este costul estimat al investiției pentru serviciile de patologie?

    Costul estimat al investiției este de 5 milioane de dolari per spital.

  • Ce tip de pacienți sunt vizați de serviciile de patologie?

    Serviciile de patologie vizează pacienții cu cancer și altele care necesită diagnosticare.

  • Cum va afecta această investiție imaginea spitalului?

    Investiția va îmbunătăți imaginea spitalului prin oferirea de servicii integrate și de calitate.

  • Ce profit suplimentar se așteaptă din serviciile de patologie?

    Se așteaptă un profit suplimentar de 95 milioane de dolari în următorii cinci ani din serviciile de patologie.

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オートスクロール:
  • 00:00:00
    live case interview a product or service
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    launch case pudong Hospital
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    are you ready to get started I wish I
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    yeah I am let's go wonderful so our
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    client is pudong Hospital a hospital
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    based in China and they provide most
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    medical services that you can think of
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    including surgery kind of consultative
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    type of services as well across 15
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    different medical departments they do
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    have a couple of key gaps though in
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    their current Services which include
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    pathology nuclear medicine
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    biochemistry services and so they're
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    currently exploring particularly for the
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    pathology service whether or not to
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    sever their current contract with a
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    third party and offer that service
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    within the hospital so that they can
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    provide cancer patients with the full
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    Suite of services that they need all
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    within the hospital
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    so they've brought on our team to help
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    them evaluate whether or not that makes
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    sense to move forward with how would you
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    help them think about the right path
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    forward
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    okay so before we get started I would
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    like to just clarify to make sure that I
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    get it right
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    it's a Chinese Hospital group that has
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    several Services out of which is
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    pathology but they're currently not
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    doing it in-house and they're
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    considering whether they should get the
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    service done in-house or not is that
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    correct
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    yeah absolutely that's spot on okay
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    awesome so yeah I I will just build my
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    framework on that but before we start I
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    would like to clarify a couple of other
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    points if it's okay so first thing
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    coming into my mind is how big is our
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    client in size and another thing is like
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    this pathology service I think since
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    it's a very technical thing I wonder
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    where does it stand in the value chain
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    of their Hospital Service as a as a
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    whole and
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    any particular objective if they have
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    any either Financial or strategy that I
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    would like to know before I start
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    building my framework do we have any
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    information on those bonds absolutely so
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    so all three of those areas are great
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    questions in terms of Hospital size
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    um or kind of organizational size our
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    client is a 30 year old hospital group
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    um with 2500 bed hospitals spread across
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    mainland China so pretty pretty sizable
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    operation
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    um in terms of your second question I
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    think around pathology services and
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    where they sit and kind of the value
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    chain that's the diagnostic phase for
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    most cancer treatments and so once a
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    patient is diagnosed the related
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    therapies like surgery and chemotherapy
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    start after that process
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    so they currently direct their patients
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    to their partner Laboratories to provide
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    those pathology Services
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    um and again that's the emperor part
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    that they're thinking about bringing
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    in-house
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    um and then I think your last question
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    was around Financial objectives is that
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    right
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    yeah both either Financial strategic any
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    kind of objective that I'd like to know
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    sure no great questions I think from a
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    strategic and operational fit of course
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    want to flag any any areas where that
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    just wouldn't be the right direction for
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    the client
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    um whether that's fit with their
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    existing Services things like that in
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    terms of financial goals they do have a
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    pretty clear-cut goal there where they
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    they would like to generate 30 million
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    in profit in total over the next five
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    years to deem this a worthwhile
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    investment for for their Hospital okay
  • 00:03:39
    okay awesome 30 million dollars in terms
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    of dollars over the next five years in
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    total is profitable yeah exactly and for
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    Simplicity just assume USD
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    okay okay perfect and it's a big
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    hospital group with 20 big hospitals
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    okay perfect
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    um may I take a minute just to build my
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    framework and then I would like to
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    verify it with you
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    of course take your time
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    okay perfect thank you
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    okay so uh in my approach to this case I
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    would like to split into three groups
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    and within each three there will be some
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    subsections first of all I would like to
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    check whether this investment is a
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    fitting strategically to decline under
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    strategy I would like to check both the
  • 00:04:37
    internal and the external and under
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    internal Outlet to see whether it's
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    compliant with the client's region
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    whether the client has enough
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    capabilities to implement this this
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    investment and whether they have you
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    know the competent processes that they
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    can integrate to the new work
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    environments and on the external part I
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    would like to see who our customers are
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    and how will they be affected by this
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    and who are competition is
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    and basically whether we will have a
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    sustainable competitive Advantage by
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    making this move and lastly how will
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    such move affect our brand image as the
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    hospital group so this was a strategic
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    fit part and the second part is the
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    financial assessment of course and under
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    Financial assessment I would like to see
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    basically how can we benefit from this
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    financially under that I would like to
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    investigate the revenues which we can
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    break down as the number of new
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    treatments times the the revenue per
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    treatment of course we need to clarify
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    that point and on the cost side there
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    will be some probably one of investment
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    and then there will be some change in
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    the cost structure both the fine the
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    fixed and the variable side
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    and after having this profit calculation
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    I would like to see basically whether
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    this profit expectation meets our Target
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    of 30 million within the first five
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    years and then if so will we be able to
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    afford that investment as the last part
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    in the the financial assessment and the
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    third section will be the risks given
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    that we have a strategy and financially
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    feasible investment opportunity I would
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    like to just consider some risks which I
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    can of course clarify later on in the
  • 00:06:35
    case but first of all it can be our
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    relationships with the our current
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    Partners which you mentioned as we were
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    Outsourcing the pathology Services
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    currently
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    and another risk can be adoption of the
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    new processes by our organization after
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    the Investments and the third lastly
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    will be the demand side whether there
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    will be enough demand from the the
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    customers from the market in this
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    pathology services that we're gonna
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    launch
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    how does this framework sound like let's
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    see how the candidate is doing so far he
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    starts the case well by recapping the
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    initial prompt and asking important
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    questions such as the definition of
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    pathology Services understanding the
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    core offerings earlier in the case is
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    essential to make the framework sound
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    more customized to the case
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    overall he provides a good structure to
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    his framework first He suggests
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    assessing if entering the pathology
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    Services is a good strategic fit for the
  • 00:07:34
    client second he will run the numbers to
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    check if the proposed strategy will meet
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    the client's Financial objectives and
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    lastly the risks
  • 00:07:44
    in terms of area for improvement he
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    could have asked his clarifying
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    questions one by one instead of asking
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    three of them altogether
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    as a general comment asking multiple
  • 00:07:54
    questions at once in any part of the
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    case may make it hard for the
  • 00:07:58
    interviewer to follow the candidate
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    no I think that's a solid and pretty
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    comprehensive frame
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    frame yeah perfect so I would like to
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    start from the Strategic fit first and
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    under that the internal layout like to
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    see like basically investigate whether
  • 00:08:18
    this investment is compliant with our
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    region if you have any and then I would
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    like to check whether we have enough
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    capabilities to implement such and such
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    an initiative and lastly how do our
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    processes
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    basically work and whether they can be
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    adopted to the to the new work style
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    after the investment do we have any
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    information on those three points
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    perfect absolutely so in the division
  • 00:08:50
    piece that sounds like we're talking
  • 00:08:51
    about fit with um Services currently
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    provided by the hospital and and kind of
  • 00:08:56
    the equipment and Facilities needed for
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    that
  • 00:09:00
    um so in terms of a fit with that Vision
  • 00:09:02
    the client does want to make sure that
  • 00:09:04
    bringing the pathology Services in-house
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    would flawlessly integrate with the
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    other services and departments within
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    the hospital so that's really key
  • 00:09:14
    um but the requirements for those
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    pathology Services themselves are quite
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    similar to other things already in the
  • 00:09:19
    hospital so a little bit of good news
  • 00:09:21
    there
  • 00:09:22
    um in terms of the the resources and
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    capabilities piece again kind of off of
  • 00:09:27
    what I just mentioned the the hospitals
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    in the group do not currently have
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    um in-house resourcing and capabilities
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    specific to those pathology services so
  • 00:09:37
    they might need to you know bring on
  • 00:09:40
    talent that is capable of handling those
  • 00:09:42
    Services as well as perhaps adapt some
  • 00:09:45
    of their current processes to again
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    flawlessly integrate with whatever is
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    already provided by the hospital
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    um and then your your third question on
  • 00:09:54
    process again there's there's kind of no
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    clear information uh right now on
  • 00:09:58
    whether the client can adapt those
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    processes but there will definitely be
  • 00:10:02
    need to
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    um so building off of that that that
  • 00:10:06
    final piece which is really important
  • 00:10:08
    for implementation since the client does
  • 00:10:11
    not know if they're able to adapt their
  • 00:10:13
    process to run the new Department based
  • 00:10:15
    on today what past information would you
  • 00:10:18
    want to investigate to help them
  • 00:10:19
    determine whether or not that makes
  • 00:10:21
    sense
  • 00:10:21
    whether they can Implement their whether
  • 00:10:24
    they can integrate their processes with
  • 00:10:27
    this investment
  • 00:10:28
    you mean yeah absolutely
  • 00:10:30
    um so whether or not they can adapt the
  • 00:10:32
    way they currently run their operations
  • 00:10:34
    to fit that new service yeah so one way
  • 00:10:37
    to look at it is that you mentioned that
  • 00:10:41
    they have some operations that are
  • 00:10:43
    similar to pathology Services it can be
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    either another lab based I'm just
  • 00:10:48
    brainstorming here and other lab-based
  • 00:10:51
    practice I may want to check whether
  • 00:10:54
    they implemented a similar service to
  • 00:10:58
    pathology in the past and whether they
  • 00:11:01
    successfully integrated their processes
  • 00:11:03
    with that
  • 00:11:05
    yeah absolutely I think that's that's a
  • 00:11:08
    great question to see if they've been
  • 00:11:09
    able to do something similar before
  • 00:11:12
    um so we do know that the client
  • 00:11:13
    currently has a blood test laboratory
  • 00:11:16
    which uses pretty similar processes to
  • 00:11:18
    pathology Services they launched it 15
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    years ago so it's a pretty mature
  • 00:11:23
    offering and it's operational and 18 out
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    of its 20 total hospitals
  • 00:11:29
    okay okay perfect so given that we have
  • 00:11:32
    this information we can assume
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    confidently that the integration of a
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    process is not going to be a big issue
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    for the client yeah absolutely I think
  • 00:11:41
    that's right okay awesome perfect as the
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    second part and the the
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    strategy fit section I would like to
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    check the customers and I would like to
  • 00:11:54
    know basically better about the what
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    type like who are our customers and how
  • 00:12:01
    can we segment them how big each segment
  • 00:12:03
    is do we have any information on that
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    yeah no great questions I actually have
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    a little bit of data from our client on
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    that that I'll share with you now so in
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    terms of customers our client has
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    um on an annual basis about 800 000
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    patients split across the following
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    patient groups
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    so about 400 000 to come in for regular
  • 00:12:25
    checks and short visits so think of
  • 00:12:27
    things like blood tests kind of in and
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    out quite quickly another 200 000 for
  • 00:12:33
    General bed stays without severe
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    conditions so these might be things that
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    are
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    um kind of non-urgent or non-critical
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    surgeries like plastic surgery
  • 00:12:43
    and then the final 200 000 patients are
  • 00:12:46
    there for long-term care bed stays and
  • 00:12:48
    stays with severe conditions and so of
  • 00:12:51
    that final group about a hundred
  • 00:12:53
    thousand are cancer patients
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    so kind of based on that information how
  • 00:12:58
    might this customer base be affected by
  • 00:13:01
    the launch of this new pathology
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    Services Department
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    okay I see
  • 00:13:06
    um
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    so it can be two things maybe so first
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    of all there might be an increase in the
  • 00:13:15
    number of patients who are taking the
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    cancer treatment from our hospital
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    because we will be providing a better
  • 00:13:23
    service
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    and the second can be that basically we
  • 00:13:27
    can gain new customers that don't exist
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    currently just to choose us because of
  • 00:13:34
    the the seamless the pros treatment
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    process
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    um yeah I think those two can be the
  • 00:13:40
    biggest
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    changes great so I think both of those
  • 00:13:43
    areas make sense
  • 00:13:45
    better understand what you mean by
  • 00:13:48
    better services and how that might drive
  • 00:13:50
    either more treatment for existing
  • 00:13:52
    customers as well as net new customers
  • 00:13:54
    yeah so better quality service to me in
  • 00:13:58
    this case is if we are currently
  • 00:14:00
    providing and most part of the treatment
  • 00:14:02
    but we are using a third party for the
  • 00:14:04
    pathology part then it might have some
  • 00:14:07
    implications on the the basic the the
  • 00:14:10
    flow that the patients the follow
  • 00:14:14
    in terms of the journey and they may
  • 00:14:16
    need to interact with those third
  • 00:14:18
    parties at some point in the treatment
  • 00:14:20
    while in the new scenario we're going to
  • 00:14:23
    be providing the basically seamless
  • 00:14:27
    let's say patient journey to those
  • 00:14:29
    clients the customers so they won't have
  • 00:14:32
    to deal with the multiple parties but
  • 00:14:35
    they will just get everything done by
  • 00:14:38
    just dealing with our our service yeah
  • 00:14:41
    completely makes sense I think having
  • 00:14:43
    that continuity of care is really
  • 00:14:45
    important for actually the outcome for
  • 00:14:49
    the patient just period as well as
  • 00:14:50
    reduces friction and stress in that
  • 00:14:52
    process from kind of porting your
  • 00:14:54
    medical records back and forth and
  • 00:14:56
    things like that so so completely makes
  • 00:14:58
    sense
  • 00:14:59
    perfect
  • 00:15:00
    and then as the next point though I
  • 00:15:04
    would like to investigate a little bit
  • 00:15:06
    the competition and I would like to know
  • 00:15:09
    basically whom will be the other
  • 00:15:12
    competitors that we will need to face
  • 00:15:15
    with and how can we break that down
  • 00:15:19
    sure sure so there are two um main
  • 00:15:21
    categories of competitors in the market
  • 00:15:23
    right now so there are hospitals with
  • 00:15:26
    pathology departments today that already
  • 00:15:28
    provide those full full Suite of Cancer
  • 00:15:31
    Treatment Services
  • 00:15:32
    this group tends to have very high
  • 00:15:34
    quality services at a high cost and
  • 00:15:37
    meets about 70 percent of demand
  • 00:15:40
    the second group are these private
  • 00:15:42
    Laboratories that provide external
  • 00:15:44
    support to patients in partnership with
  • 00:15:47
    Hospital groups and so this tends to be
  • 00:15:49
    a little bit more affordable
  • 00:15:51
    um but again kind of up that alley of
  • 00:15:53
    quality of care tends to be a little
  • 00:15:54
    lower because you are changing care
  • 00:15:57
    providers and so this group meets the
  • 00:16:00
    other 30 or so of demand I see so the
  • 00:16:03
    first group is pretty much what we are
  • 00:16:05
    aiming to be and the second group is
  • 00:16:08
    basically the third party that we are
  • 00:16:10
    currently partnering
  • 00:16:12
    yeah very much so okay
  • 00:16:14
    okay perfect perfect so as the last step
  • 00:16:18
    in the Strategic fit before I moved to
  • 00:16:22
    the financial assessment is basically
  • 00:16:25
    the image part
  • 00:16:27
    I would like to know there how will such
  • 00:16:29
    an investment in transformation change
  • 00:16:32
    and affect are brand images the hospital
  • 00:16:35
    group sure and do you um just to
  • 00:16:38
    understand do you see this is a
  • 00:16:39
    potential risk benefit or trying to to
  • 00:16:42
    explore that yeah whether if it will
  • 00:16:45
    have any impact on our brand image as
  • 00:16:48
    the as the company in the eyes of the
  • 00:16:51
    customers
  • 00:16:52
    okay no makes sense so the the client
  • 00:16:55
    itself as a hospital group across its
  • 00:16:58
    services is a has a very prestigious
  • 00:17:01
    brand reputation
  • 00:17:02
    um but again for this particular set of
  • 00:17:05
    services we do know that having that
  • 00:17:07
    continuity of care and a single care
  • 00:17:10
    provider really increases quality as
  • 00:17:13
    well as perception and satisfaction
  • 00:17:14
    among patients
  • 00:17:16
    um so we do believe that providing that
  • 00:17:18
    all in-house would improve the
  • 00:17:20
    hospital's brand image okay perfect so
  • 00:17:23
    at the first look it looks like we can
  • 00:17:26
    grow with this investment
  • 00:17:29
    and also increase our repetition improve
  • 00:17:33
    our brain damage while this investment
  • 00:17:35
    sounds quite achievable but of course we
  • 00:17:39
    need to Deep dive into the financials a
  • 00:17:42
    little bit to see whether it's really
  • 00:17:43
    financially feasible or not as well
  • 00:17:45
    let's quickly discuss how the candidate
  • 00:17:48
    is performing so far one of the
  • 00:17:50
    strengths of the candidate is that he is
  • 00:17:52
    quite adaptive and uses case-specific
  • 00:17:55
    terminologies in his analysis such as
  • 00:17:57
    pathology Services third-party lab-based
  • 00:18:00
    practices cancer patients and so on pay
  • 00:18:04
    attention that he synthesizes his
  • 00:18:06
    learnings at the end of the Strategic
  • 00:18:08
    fit section before moving to financial
  • 00:18:10
    assessment it is a good habit to form
  • 00:18:13
    interim conclusions like this so that
  • 00:18:15
    both the candidate and interviewer
  • 00:18:17
    understand how the findings so far will
  • 00:18:19
    help solve the client's problem
  • 00:18:22
    so at this point I would like to if it's
  • 00:18:25
    okay that just move to the next section
  • 00:18:27
    and to see how will such investment
  • 00:18:31
    change our profitability as it was the
  • 00:18:35
    major concern and in their basically I
  • 00:18:38
    would like to break it into two areas
  • 00:18:41
    one will be as we discussed before the
  • 00:18:45
    prophets
  • 00:18:46
    that's going to be generated thanks to
  • 00:18:49
    this service from the pathology Services
  • 00:18:53
    let's say and the second will be the
  • 00:18:56
    profit the additional profit we're gonna
  • 00:18:59
    have from the additional cancer patients
  • 00:19:01
    who start to use our service because now
  • 00:19:03
    we are providing a higher quality
  • 00:19:06
    service as we discussed before and
  • 00:19:09
    to do those basically I would like to
  • 00:19:12
    check the profit structure so the on one
  • 00:19:15
    hand it's going to be the revenues and
  • 00:19:17
    on the other one is going to be the
  • 00:19:19
    costs
  • 00:19:20
    and they're under the profit I would
  • 00:19:23
    like to see the how what's going to be
  • 00:19:26
    the quantity probably it's going to be
  • 00:19:28
    the the number of patients or not number
  • 00:19:30
    of services that it will be it'll be
  • 00:19:32
    technical so I would like to get some
  • 00:19:35
    help there and then times the price of
  • 00:19:38
    that service will basically give me the
  • 00:19:40
    revenue
  • 00:19:41
    and on the other hand in the cost side
  • 00:19:44
    that there will be probably a fixed cost
  • 00:19:46
    and variable costs under fixed I can
  • 00:19:50
    just you know say rent labor
  • 00:19:55
    any kind of marketing or any other fixed
  • 00:19:57
    cost and under the variable it will be
  • 00:20:00
    pretty much the cost of serving my One
  • 00:20:03
    customer one patient would which may be
  • 00:20:05
    either material or any other variable
  • 00:20:09
    cost and this will help me to build my
  • 00:20:13
    annual profitability structure while on
  • 00:20:16
    the other hand I would like to deduct
  • 00:20:18
    the one of investment costs
  • 00:20:21
    from The Five-Year total annual profits
  • 00:20:25
    to come up with a basically net profit
  • 00:20:28
    at the end of five years to compare this
  • 00:20:30
    with our Target of 30 million dollars
  • 00:20:33
    and to see whether
  • 00:20:35
    it's feasible ornaments perfect no that
  • 00:20:38
    that sounds like all the components we
  • 00:20:40
    want to cover
  • 00:20:41
    um do you have a preference for starting
  • 00:20:42
    on the pathology Services side versus
  • 00:20:45
    the the just overall uplift to just keep
  • 00:20:49
    it easier as a starting point that I
  • 00:20:52
    would like to start from the profit that
  • 00:20:55
    we can generate from the additional
  • 00:20:56
    cancer patients
  • 00:20:58
    and they're basically I would like to
  • 00:21:01
    know
  • 00:21:02
    first of all the number of patients
  • 00:21:05
    which we covered briefly but I would
  • 00:21:08
    like to also just clarify that and then
  • 00:21:11
    the price
  • 00:21:12
    per patient that we
  • 00:21:15
    generate so it will give us the revenues
  • 00:21:19
    and times our gross margin which will
  • 00:21:22
    give us our profits from an additional
  • 00:21:25
    passion
  • 00:21:26
    and then I would like to multiply it
  • 00:21:29
    with five to find the five-year
  • 00:21:33
    additional profit from the additional
  • 00:21:36
    cancer pensions basically how does that
  • 00:21:38
    sound
  • 00:21:39
    yep that sounds great
  • 00:21:41
    um definitely makes sense and we do have
  • 00:21:43
    data points for for all three of those
  • 00:21:45
    components
  • 00:21:47
    um so in terms of the expected increase
  • 00:21:49
    and number of cancer patients we're
  • 00:21:51
    anticipating about 10 000 more patients
  • 00:21:54
    per year
  • 00:21:55
    the average price charged for these
  • 00:21:58
    Cancer Treatments is ten thousand
  • 00:22:00
    dollars per treatment
  • 00:22:02
    and then that gross margin on these
  • 00:22:05
    Cancer Treatments is about 10 percent
  • 00:22:07
    okay so ten thousand so it's going to be
  • 00:22:10
    ten percent increase in the number of
  • 00:22:12
    patients ten thousand dollars
  • 00:22:14
    preparation and the ten percent gross
  • 00:22:17
    profit margin okay perfect that will
  • 00:22:19
    give us around 10 million a year and if
  • 00:22:23
    we calculated five-year value it's going
  • 00:22:25
    to be 50 million dollars additional
  • 00:22:27
    profit from just the additional cancer
  • 00:22:29
    patients okay perfect
  • 00:22:32
    um
  • 00:22:33
    then on the other hand
  • 00:22:35
    um when it comes to additional profit
  • 00:22:37
    from the pathology services that um I
  • 00:22:41
    would like to take just 30 seconds to to
  • 00:22:43
    build my formula and then I'll discuss
  • 00:22:45
    with you is that okay
  • 00:22:48
    yeah absolutely
  • 00:22:49
    thank you
  • 00:22:52
    as I mentioned before there will be two
  • 00:22:56
    Coastal elements one is going to be
  • 00:22:57
    fixed and one's going to be the variable
  • 00:22:59
    so when it comes to fixed cost
  • 00:23:02
    um I would like to know what is going to
  • 00:23:05
    be our total fixed cost there and I will
  • 00:23:07
    multiply that with the number of
  • 00:23:09
    hospitals because we I know that we have
  • 00:23:12
    20 hospitals and then on the other end
  • 00:23:16
    on the variable cost side I would like
  • 00:23:18
    to know how many more patients we will
  • 00:23:22
    serve and what will be the variable cost
  • 00:23:24
    per patient there so the total of those
  • 00:23:28
    will be will give me the total annual
  • 00:23:31
    cost annual running costs for a year and
  • 00:23:34
    I will calculate the price times number
  • 00:23:38
    of patients which gonna give me the
  • 00:23:40
    revenues and then I will subtract the
  • 00:23:43
    cost figure from the revenue to find the
  • 00:23:45
    annual running profit
  • 00:23:47
    and finally I will multiply it with 5
  • 00:23:50
    which is the number of years
  • 00:23:52
    if it's okay can I please ask if we have
  • 00:23:56
    any information on those
  • 00:23:58
    points yeah yeah absolutely
  • 00:24:01
    um so on the fixed cost side we do have
  • 00:24:03
    some information on the cost of
  • 00:24:05
    pathology Services per hospital per year
  • 00:24:09
    so you need about 10 medical personnel
  • 00:24:12
    per hospital to run these services
  • 00:24:15
    the pay per medical staff is around 200
  • 00:24:19
    Grand per year
  • 00:24:20
    there's also some equipment that they
  • 00:24:22
    need so the average license costs for
  • 00:24:25
    Microsoft software is about 1.5 million
  • 00:24:28
    and then there's also Insurance costs of
  • 00:24:31
    about half a million dollars okay
  • 00:24:34
    okay so 200 000
  • 00:24:37
    times 10
  • 00:24:39
    and one and a half million and a half a
  • 00:24:42
    million on the the fixed end okay
  • 00:24:44
    perfect and on the variable cost side
  • 00:24:47
    that I would like to know what's going
  • 00:24:49
    to be the variable cost per person and
  • 00:24:52
    then how many patients are we gonna
  • 00:24:54
    serve so this will give me our total
  • 00:24:57
    annual variable cost
  • 00:24:59
    absolutely great question so in terms of
  • 00:25:01
    variable cost
  • 00:25:03
    hundred dollars per patient and then for
  • 00:25:06
    that total number of patients as you may
  • 00:25:08
    remember we currently have around a
  • 00:25:11
    hundred thousand cancer patients and
  • 00:25:12
    then we'll get another 10K
  • 00:25:15
    um from this uplift that we've already
  • 00:25:16
    discussed right right okay perfect yeah
  • 00:25:20
    110k times 100 preparation okay
  • 00:25:24
    with those information that I can
  • 00:25:26
    calculate the the fixed and the variable
  • 00:25:28
    cost and then I would like to subtract
  • 00:25:31
    that from the revenues which I need the
  • 00:25:35
    price per person to calculate as we know
  • 00:25:38
    that the number of patients going to be
  • 00:25:40
    110k so if I can just have the price
  • 00:25:43
    information I can calculate the annual
  • 00:25:45
    revenues as well do we know at what
  • 00:25:47
    price are we going to serve to those
  • 00:25:49
    customers we do so on average these
  • 00:25:52
    services are priced at about a thousand
  • 00:25:54
    dollars per patient okay perfect
  • 00:25:58
    perfect
  • 00:26:00
    um then I'd like to just take a moment
  • 00:26:02
    to calculate the annual profit and then
  • 00:26:05
    I'll get back
  • 00:26:07
    yep that sounds great
  • 00:26:09
    yeah perfect
  • 00:26:13
    okay so out of those
  • 00:26:16
    calculations that I end up with
  • 00:26:19
    approximately 19 million dollars profit
  • 00:26:22
    per year multiplied by five that will
  • 00:26:26
    give us 95 million dollars
  • 00:26:28
    and those 95 million added up with the
  • 00:26:33
    50 million that we previously calculated
  • 00:26:35
    for the dish from the profit from the
  • 00:26:38
    additional patients then it's going to
  • 00:26:40
    be 145 million dollars in five years
  • 00:26:43
    it's going to be our total profit but as
  • 00:26:47
    the last Point as I mentioned before
  • 00:26:49
    then we need to subtract the capex from
  • 00:26:53
    that so probably we will have one of
  • 00:26:56
    investment per hospital so I would like
  • 00:26:59
    to know finally that data and then
  • 00:27:02
    calculate the net profit over the next
  • 00:27:05
    five years do we have any information on
  • 00:27:07
    this yeah we do and good call on calling
  • 00:27:10
    that up per hospital so we anticipate
  • 00:27:13
    about five million dollars worth of
  • 00:27:15
    investment costs per Hospital okay so 5
  • 00:27:18
    million times 20 is going to be 100
  • 00:27:19
    million then if you subscribe it from
  • 00:27:22
    145 then we will have 45 million dollars
  • 00:27:26
    in total of five years
  • 00:27:29
    yeah okay exactly so what's what's your
  • 00:27:32
    take there okay yeah um well
  • 00:27:36
    it sounds feasible from Financial
  • 00:27:39
    perspective but of course we also need
  • 00:27:43
    to make sure that we can afford this
  • 00:27:45
    investment so at that point I would like
  • 00:27:47
    to
  • 00:27:48
    check whether we have enough cash to
  • 00:27:52
    make this investment or whether we have
  • 00:27:54
    enough revenues sorry profits any cash
  • 00:27:58
    flows that I can use as a source of
  • 00:28:01
    investment for for this 100 million do
  • 00:28:06
    we know anything about it yeah no great
  • 00:28:08
    question based on our conversations with
  • 00:28:10
    the client uh they are confident they
  • 00:28:12
    can afford that level of
  • 00:28:14
    so I think where we're in good shape for
  • 00:28:16
    a strategic fit for the financial piece
  • 00:28:20
    um so before concluding the case could
  • 00:28:21
    you just lay out for our clients some of
  • 00:28:23
    the potential risks that you see with
  • 00:28:25
    moving forward yeah sure sure to hear
  • 00:28:29
    good to hear that they can afford it and
  • 00:28:31
    looks all good
  • 00:28:33
    um so in terms of risks
  • 00:28:37
    um can I take a moment to just get in my
  • 00:28:40
    toes
  • 00:28:41
    yeah please do
  • 00:28:42
    thank you
  • 00:28:45
    so in terms of risks I would like to
  • 00:28:49
    assess three points one is that what's
  • 00:28:52
    going to be our relationship with our
  • 00:28:54
    current Partners whom we work to to
  • 00:28:57
    basically get the pathology services
  • 00:29:00
    and the second is that we cover this
  • 00:29:04
    like at a high level before but I would
  • 00:29:06
    like to check whether we can really
  • 00:29:08
    integrate our processes with that new
  • 00:29:11
    service
  • 00:29:12
    and the third one will be the demand
  • 00:29:15
    that we just assume estimated will be
  • 00:29:18
    sustainable going forward or not I
  • 00:29:21
    wonder if the client ever investigated
  • 00:29:24
    any of those areas what do you think
  • 00:29:27
    yeah those are all great points
  • 00:29:29
    um in terms of the your comment on the
  • 00:29:32
    provider so we know that they also have
  • 00:29:35
    a medical equipment retail company and
  • 00:29:37
    the client does work with them to supply
  • 00:29:39
    some materials for the hospital that
  • 00:29:41
    only accounts for four percent of their
  • 00:29:44
    total um material procurement today but
  • 00:29:46
    there there is that relationship
  • 00:29:49
    um I think your second point was around
  • 00:29:51
    whether or not they could really
  • 00:29:53
    integrate this new service with the
  • 00:29:55
    current Hospital groups processes and
  • 00:29:58
    since they did they were successful in
  • 00:30:00
    doing this with the blood lab tests we
  • 00:30:02
    don't see that as too big of a risk
  • 00:30:05
    um and then I think your final point was
  • 00:30:07
    around demand so we don't have any
  • 00:30:10
    information on on that today but we do
  • 00:30:13
    know that based on customer surveys
  • 00:30:16
    um really what cancer patients care most
  • 00:30:17
    about is having that Flawless delivery
  • 00:30:20
    of service and having continuity and
  • 00:30:23
    confidence in their care provider so
  • 00:30:26
    um So based on that as long as we're
  • 00:30:27
    able to offer that and deliver that
  • 00:30:29
    which is really one of the main goals of
  • 00:30:31
    bringing that service in-house we we
  • 00:30:33
    feel like that's in good shape okay
  • 00:30:34
    perfect so the partner relationship is
  • 00:30:37
    not going to get affected a lot and we
  • 00:30:39
    are confident to integrate the processes
  • 00:30:42
    and the demand we're
  • 00:30:44
    pretty sure that's going to be
  • 00:30:46
    sustainable
  • 00:30:48
    um it looks pretty good actually that I
  • 00:30:51
    would like to just ask for 30 seconds to
  • 00:30:54
    structure my recommendation that I would
  • 00:30:56
    like to conclude the case if you don't
  • 00:30:58
    want to cover any other point yeah I
  • 00:31:01
    think that sounds great we'd love to
  • 00:31:02
    hear your final thoughts for the client
  • 00:31:04
    awesome thank you
  • 00:31:09
    I would like to recommend the client go
  • 00:31:11
    ahead with this investment because of
  • 00:31:13
    the following three reasons first of all
  • 00:31:15
    this investment sounds profitable
  • 00:31:18
    because it will generate 45 million
  • 00:31:21
    additional profits while our objective
  • 00:31:24
    is 30 million profit in the total of
  • 00:31:26
    next five years
  • 00:31:28
    the second reason is that if implemented
  • 00:31:31
    successfully which sounds feasible this
  • 00:31:34
    investment can enhance our capabilities
  • 00:31:37
    as a hospital to further expand in other
  • 00:31:40
    areas to provide more services in the
  • 00:31:43
    future and the third reason is that as
  • 00:31:46
    we just covered there's no significant
  • 00:31:49
    risk associated to this investment so it
  • 00:31:53
    looks pretty sound in that perspective
  • 00:31:55
    as well going forward I recommend the
  • 00:31:58
    client to start building their labs and
  • 00:32:01
    then starting the marketing of the the
  • 00:32:04
    new services
  • 00:32:06
    wonderful I think all of that makes
  • 00:32:08
    sense and we'll we'll share that back
  • 00:32:09
    with the client thank you awesome thank
  • 00:32:12
    you so much
  • 00:32:13
    overall the candidate chose an
  • 00:32:15
    outstanding performance in the case
  • 00:32:17
    let's go through the prep matter
  • 00:32:19
    evaluation criteria to assess his
  • 00:32:21
    performance in detail
  • 00:32:23
    beginning with problem solving and
  • 00:32:25
    insights
  • 00:32:26
    structure one of the strongest areas of
  • 00:32:29
    the candidate specifically in the profit
  • 00:32:31
    uplift calculation his structure is easy
  • 00:32:34
    to follow and comprehensive
  • 00:32:36
    judgment even though the case is a life
  • 00:32:39
    sciences case a topic that might come
  • 00:32:41
    across as challenging for many
  • 00:32:43
    candidates he seems to be at ease with
  • 00:32:46
    case-specific terminologies
  • 00:32:48
    rigor the case involves a moderate level
  • 00:32:51
    of calculations especially while
  • 00:32:53
    checking the client's Financial
  • 00:32:54
    objective
  • 00:32:55
    by using micro level data provided by
  • 00:32:58
    the interviewer he manages to reach 50
  • 00:33:00
    million dollars additional profits from
  • 00:33:03
    cancer treatment services and 95 million
  • 00:33:06
    dollars profits from pathology services
  • 00:33:07
    in the next five years successfully
  • 00:33:10
    creativity he shows a good level of
  • 00:33:13
    creativity but more importantly he is
  • 00:33:16
    able to show this proactively such as
  • 00:33:18
    during the financial assessment of the
  • 00:33:20
    case
  • 00:33:21
    synthesis he is able to convey his key
  • 00:33:24
    learnings after each column in his
  • 00:33:26
    framework strategic fit Financial
  • 00:33:28
    assessment and risks he is quite
  • 00:33:31
    disciplined in discussing the so what of
  • 00:33:33
    the analysis regularly similar to
  • 00:33:35
    Consultants day-to-day interactions with
  • 00:33:38
    their clients
  • 00:33:39
    next communication and presence
  • 00:33:42
    presence overall he shows a professional
  • 00:33:45
    attitude throughout the case he is
  • 00:33:47
    confident yet also maintains a positive
  • 00:33:50
    attitude even under pressure
  • 00:33:52
    Precision he is able to articulate his
  • 00:33:55
    thoughts clearly in his initial
  • 00:33:56
    framework approach to calculate annual
  • 00:33:59
    profits and final recommendation
  • 00:34:02
    active listening he is quite receptive
  • 00:34:05
    to the verbal cues and data points
  • 00:34:07
    received by the interviewer throughout
  • 00:34:09
    the case
  • 00:34:10
    relationship management
  • 00:34:12
    he is able to build a nice rapport with
  • 00:34:14
    the interviewer this is aided by his
  • 00:34:16
    overall demeanor as well as the way he
  • 00:34:18
    incorporates case-specific language into
  • 00:34:21
    the interview which signals he is
  • 00:34:23
    listening closely
タグ
  • Pudong Hospital
  • patologie
  • investiție
  • servicii medicale
  • China
  • profit
  • riscuri
  • pacienți
  • imagine de brand
  • analiză financiară