Health Affairs

Health Affairs, 27, no. 5 (2008): 1260-1270 doi: 10.1377/hlthaff.27.5.1260 © 2008 by Project HOPE	New Online   Getting Health Reform Done   After the State of the Union   Incremental Reform   E-Health in Developing World   Most-Read Articles in 2009

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Innovation Abroad

Lessons From India In Organizational Innovation: A Tale Of Two Heart Hospitals

Barak D. Richman, Krishna Udayakumar, Will Mitchell and Kevin A. Schulman

Recent discussions in health reform circles have pinned great hopes on the prospect of innovation as the solution to the high-cost, inadequate-quality U.S. health system. But U.S. health care institutions—insurers, providers, and specialists—have ceded leadership in innovation to Indian hospitals such as Care Hospital in Hyderabad and the Fortis Hospitals around New Delhi, which have U.S.-trained doctors and can perform open heart surgery for $6,000 (compared to $100,000 in the United States). The Indian success is a window into America’s stalemate with inflating costs and stagnant innovation.

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