Success Stories
Tajikistan

EDP Treats Financial Health of Tajik Medical Clinic

Shifo, a private medical clinic in Dushanbe, turned to EDP to begin strategic planning and improve financial management, thereby avoiding impending bankruptcy. Implementation of EDP’s recommendations brought about a 200% sales increase.

Shifo is the only private medical clinic in Tajikistan. By increasing the scope and quality of available medical services, Shifo hopes to transform health care in Tajikistan. However, when EDP Relationship Manager Rahmat Khakulov first visited the clinic in June 2004, they were in a serious financial crisis. The clinic was providing very limited services and had yet to make a profit.

Since all health care had strictly been publicly funded, the doctors and administrators at Shifo had no previous experience in managing a for-profit business. They did not know how to match costs to revenues or properly price their services. Though Shifo was providing a valuable, high-quality service, it was on the verge of bankruptcy due to lack of strategic planning and financial management.

With Financial Practice Specialist Farogat Gafurova, Shifo analyzed its pricing strategy and made much needed adjustments. EDP Marketing Specialist Daler Jumaev then helped Shifo design a marketing plan that focuses on attracting new clients, especially corporate clients who provide medical coverage to employees. Shifo was also advised to purchase valuable, yet affordable, equipment that is currently not available at other hospitals. A significant acquisition was the recently purchased computer tomography CAT Scan. In the past, people needed to go abroad for medical testing that can now be done in Tajikistan. This not only delayed critical diagnosis, but also was financially impossible for many people.

Shifo has since increased sales by 200%, largely due to the tripling of corporate clients from 2 to 6 and the purchase CAT Scan. In addition to an increase in overall sales, Shifo realized a profit for the first time during the month of December. Their profit margin of 15.9% is particularly substantial given their margin of -26.5% in June. Due to the work of EDP Dushanbe and the dedication of the Shifo staff, sustainable private health care in Tajikistan is becoming a reality.

Deputy Director of Shifo, Gulnora Saburova, has witnessed the changes at the clinic since beginning their cooperation with EDP. "When Shifo first opened it was very chaotic and unorganized. Participation in EDP trainings and working with EDP consultants helped us to work more systematically. We learned about financial planning, marketing and strategic planning. We completed a marketing plan to promote our services. Now, people know about Shifo, not only in Dushanbe, but throughout the Republic
of Tajikistan”

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