Validation of multi-year plan of diagnostics laboratory

Situation

The Company, a central laboratory providing diagnostic services in its region, found that its cost base and investment requirements were substantially higher than anticipated in the original business case. In response, together with an external adviser, the laboratory revisited the business case and developed a cost-saving plan, which revealed a significant funding requirement that stakeholders had to address.

Solution

At the Company’s request, Beaufort carried out an independent validation of the multi-year plan, the variance analysis versus the original business case, and the business proposition at both a commercial and non-commercial level. In addition, Beaufort assessed the feasibility and substantiation of the cost-saving plan and identified further savings opportunities as well as the management information required. In line with Beaufort’s recommendations, the Company is taking follow-up steps to gain greater control over its cost base, enabling it to make well-founded strategic decisions.