Swot analysis of testing laboratory

Running head: SWOT Analysis 1

SWOT Analysis 2

SWOT Analysis
SWOT Analysis

According to Thinking in Systems: A Primer (2008), “Everything we think we know about the world is a model. Our models do have a strong congruence with the world. Our models fall far short of representing the real world fully (Meadows, 2008).” In healthcare, we follow procedures and practices that were modeled for us during our education. If we wish to better the environment that we're working in, it is important to understand that our models aren't what happens in the real world. To be successful we should prepare ourselves by planning.

Part of the planning process involves preparing an analysis that allows the strategic planning team to reflect on where the organization has been, where it currently stands, and where it is going. This process reviews the internal aspects (strengths and weaknesses) and external forces (opportunities and threats) and is better known as a SWOT analysis. Through a SWOT analysis, the healthcare system can find the best route to successfully planning of the organization.

Objective
The objective of this SWOT Analysis is to define a goal for Laboratory Corporation of America and examine at minimum two weaknesses, opportunities and threats that could be leading risk factors into organizational future success. Additionally, the SWOT Analysis will show the distinction between where the organization is today and where it could be in the future.

SWOT Analysis
Strengths

Weaknesses

· Engages medical and scientific staff

· An overall workforce of nearly 60,000 employees (Laboratory Corporation of America Holdings, 2018)

· 115 million plus patient encounters per year/ 2.5 million per week

· Supporting clinic trials in about 100 countries

· Strong history of acquisitions and strategic collaborations (Walgreens, 2018)

· Logistic capabilities through courier vehicles and aircraft transport

· 15 Specialty Testing Groups/Labs

· Excess of $10 billion revenue in 2017 (Laboratory Corporation of America Holdings, 2017)

· Strong community outreach programs and philanthropy

· Lack of skilled employees to fill voids in employment numbers

· Too focused on productivity leading to more errors in patient results and increased cost

· Company compartmentalization (large separation in divisions/specialization)

· Disconnect from the patient service center to lab testing locations (lost paperwork and specimen retrieval practices)

· Information security breach of July 2018 (Information Security)

· Client services and patient data sharing

· National/International leasing of properties

· Lack of trained employees during high demand and client growth

Opportunities

Threats

· Purchase buildings that are currently leased to LabCorp to save on operating expenditures

· More strategic collaborations with companies like Walgreens (CVS, RiteAid, Walmart)

· College outreach/recruitment programs seeking skilled healthcare and information systems professionals

· Venture with information systems company to perform risk audits and security compliance checks

· Secure lab service agreements with IPAs, Hospital Systems and Department of Corrections

· Capitalize on growing demand for “trendy” services such as 23 and me, ancestry/heritage testing

· Healthcare reform involving biopharmaceutical industries

· Government-owned labs offering cheaper diagnostics

· International healthcare policy/framework changes

· Changes to payer regulations in the USA

· Exclusion from government programs due to anti-fraud and abuse regulations (only if violations are found)

· Increased cost if FDA regulations of laboratory developed tests (LDTs) and diagnostic products are limited

· Discontinuation or recalls of existing testing products

· Increased competition from competitors

· Failure to obtain new clients/retention

Prioritization of SWOT Items
According to David Brydson (2018), “Strategy defines, or outlines, the desired goals and why you should go about achieving them. The strategic planning phase involves business thinkers (namely you – the small business owner) determining why, and in a global sense what, you will achieve your stated goals. Tactics are the specific actions you take in implementing your strategy. These actions comprise what is to be done, in what order, using which tools and personnel (Brydson, 2018).” When considering which areas to focus energy on while strategic planning LabCorp should implement tactics that enable the company to reduce information security breaches, property cost and productivity errors/increased retesting cost.

Considering that LabCorp had a major breach of their security system in July 2018, it is important for the company to ensure their clients and providers that their privatized health information is secured. This should be a top priority because a large portion of lab testing services and patient information are stored/transmitted electronically. An opportunity presents in this case, as LabCorp could recruit college graduates in the IS/IT field to assess the secureness of their current IT system. In the long run, this could be the breakthrough the organization needs to ensure a trusted reputation.

Although having a trusted reputation will go a long way towards retaining clients and gaining new ones, LabCorp must face the additional issue of more demand from clients equals a need for skilled healthcare professionals. We are currently in a time when older generations require more care and health services. To meet those future demands, LabCorp will have to edge out their competitors for employees. This will require the company to consider a better total compensation package slightly above industry standards.

If LabCorp can maintain their employees at above industry compensation standards, there will be a reduction in stress and pressure to perform. Employees who feel valued and are satisfied in their careers tend to perform better. This would reduce testing errors and decrease the cost that is incurred by LabCorp for having to conduct redundant testing. A supportive management team leads employees to be more willing to work hard for better rewards. Additionally, clients and patient are happy because they don't have to wait an extended time for the test. They also will not see testing fee increases in the short term pay scales. This can lead to clients using LabCorp exclusively as their lab service of choice.

Conclusion
In conclusion, after looking around my place of employment, I found many internal factors that were positive. Equally, I found places for improvement. For LabCorp to remain successful and profitable over the years, there are some places that will require the organization to step out of their comfort zone and take a risk. As the saying goes, no risk: no reward.

LabCorp can become an extremely rewarding place, not only for employees but also for the clients and patients that rely on the services. The mission of LabCorp is “Improving Health, Improving Lives.” To fulfill that visionary statement, it will take more than $10 billion and a nice website. It will require the organization to begin to look for feedback in places, such as employee satisfaction, patient treatment, and corporate social responsibility.

References Brydson, D. (2018, April 30). Strategic and Tactical Planning: Understanding the Difference. Retrieved from Small Biz Link: A Monster Community: http://smallbizlink.monster.com/training/articles/855-strategic-and-tactical-planning-understanding-the-difference#comment_form Laboratory Corporation of America Holdings. (2017). Annual Report Form 10-K. Burlington/Washington, DC: United Stated Securities Exchange Comission. Laboratory Corporation of America Holdings. (2018, November 26). About US. Retrieved from LabCorp: https://www.labcorp.com/about-us Meadows, D. H. (2008). Thinking in Systems: A Primer. White River Junction: Chelsea Green Publishing. Walgreens. (2018, October 10). Walgreens and LabCorp to Open at Least 600 LabCorp at Walgreens Patient Service Centers. Retrieved from Walgreens Newsroom: https://news.walgreens.com/press-releases/general-news/walgreens-and-labcorp-to-open-at-least-600-labcorp-at-walgreens-patient-service-centers.htm