Laboratory Sales & Marketing

PAML Uses CRM Approach to Cut Lost Accounts to Near Zero

Lost accounts are the curse of all laboratories and outreach programs. In some cities, major lab competitors simply trade the same accounts back and forth from one year to the next as physicians react to problems and service breakdowns by switching lab providers. That's why the success of Spokane, Washington-based PAML (Pathology Associates Medical Laboratories) at driving lost accounts to near zero is a noteworthy accomplishment.

At yesterday's opening session of Lab Quality Confab  here in Atlanta, Rosalee Allan, Chief Operations Officer at PAML, shared the management strategies PAML is using to improve service levels in every area of laboratory operations. The cornerstone of this effort is the sophisticated use of a customized CRM (customer relationship management) system to proactively identify problems with clients. PAML uses this information to then work closely with the client to resolve these issues and insure complete customer satisfaction.

PAML's effort was based on recognition of a common fact within the laboratory industry. "If a lab tracks the source of all errors, about 40% of errors originate in pre-analytical steps, reaching as far back as when the order is placed," said Allan to the General Session audience at Lab Quality Confab. "Another 40% of the errors happen during post analytical steps. The remaining 20% of errors occur during the analytical phase-which happens to be were most labs focus their problem-solving efforts. PAML decided to tackle error reduction in pre- and post-analytical processes as a way to give us a quantum improvement in customer service."

Allan listed these sources of errors:

Common Pre-Analytical Errors

• improper specimen collection (poor phlebotomy technique, wrong tube)
• improper labeling of the specimen
• improper handling of the specimen
• specimen transport
• improper data entry of the information (test/patient/ordering)

Common Post-Analytical Errors

• delayed delivery of results
• billing issues

"Measuring service is difficult," said Allan. "If a client was experiencing a series of problems, even minor ones, we could respond to the individual events. But we were unable to see the big picture. We didn't have an accurate way to see all of the issue that a client was experiencing. That's what motivated us to invest in developing a comprehensive CRM system that wraps around our LIS. Now we have an enterprise-wide view of client information. As we spot patterns of service issues that affect individual clients, we can now take proactive action to fix theses issues and, most importantly, let the client know that we knew about the problems and fixed them!"

Allan told the Lab Quality Confab audience that the loss a major account had been a motivating factor in developing the CRM. Since its implementation, PAML has driven the number of lost clients down to near zero. Dark Daily observes that PAML's achievement shows how more sophisticated informatics capabilities, combined with quality management methods for process improvement, will allow laboratories to improve the day-to-day level of service they provide to patients and referring physicians.

In fact, over the course of day one of Lab Quality Confab, there have been remarkable stories for many labs about major improvements in operations, clinical performance, and customer service. Dark Daily will provide more detailed briefings about events at this first-ever conference on how laboratories and hospitals are using Lean, Six Sigma, and other improvement methods. More than 270 people are in attendance and they have been both energetic and enthusiastic about the presentations.

Your Dark Daily Editor,

Robert Michel