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Reverse Innovation in Health Care: How to Make Value-Based Delivery Work

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Health-Care Solutions from a Distant Shore

Health care in the United States and other nations is on a collision course with patient needs and economic reality. For more than a decade, leading thinkers, including Michael Porter and Clayton Christensen, have argued passionately for value-based health-care replacing delivery based on volume and fee-for-service with competition based on value, as measured by patient outcomes per dollar spent.

Though still a pipe dream here in the United States, this kind of value-based competition is already a reality--in India. Facing a giant population of poor, underserved people and a severe shortage of skills and capacity, some resourceful private enterprises have found a way to deliver high-quality health care, at ultra-low prices, to all patients who need it. This book shows how the innovations developed by these Indian exemplars are already being practiced by some far-sighted US providers--reversing the typical flow of innovation in the world.

Govindarajan and Ramamurti, experts in the phenomenon of reverse innovation, reveal four pathways being used by health-care organizations in the United States to apply Indian-style principles to attack the exorbitant costs, uneven quality, and incomplete access to health care. With rich stories and detailed accounts of medical professionals who are putting these ideas into practice, this book shows how value-based delivery can be made to work in the United States. This "bottom-up" change doesn't require a grand plan out of Washington, DC, agreement between entrenched political parties, or coordination among all players in the health-care system. It needs entrepreneurs with innovative ideas about delivering value to patients. Reverse innovation has worked in other industries. We need it now in health care.

340 pages, Kindle Edition

Published June 19, 2018

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About the author

Vijay Govindarajan

42 books62 followers
Vijay Govinadrajan is the Earl C. Daum 1924 Professor of International Business at the Tuck School at Dartmouth's Center for Global Leadership.

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Displaying 1 - 11 of 11 reviews
Profile Image for Jas.
699 reviews14 followers
February 4, 2019
This was a well written and organized case study. It definitely lays out the problems in US healthcare, showcases what we can learn from health care systems in India, and documents the successes of US based health care providers that have already adopted some of these strategies. Like any well thought out study, the book also addresses questions, concerns, and obstacles in improving health care in the US. This book doesn't pretend to know all the answers, or suggest that there is a one size fits all solution to improving US healthcare. This book does however provide a framework for how to best address these issues, and nurture innovation, by providing examples of successful innovators. Great read for anyone who thinks healthcare in the US is doomed. Not all is lost.
Profile Image for Atharva Ameria.
16 reviews
April 23, 2021
We often look towards USA, UK and other European countries and say that their health care system is top-notch (me included). Well, after reading this profoundly written book about Reverse Innovation, I can say we couldn't be more wrong. The beauty of Reverse Innovation lies in the way it inspires global health-care leaders in improving their health outcomes and reduce costs at the same time. Indian exemplars mentioned in the book are doing a magnificent job in trying to focus on value and not volume. We often measure healthcare in terms of no. of operations performed rather than no. of patients cured/ treated. Value based healthcare is the need of the hour and it will take efforts from all fronts to make it a reality. Be it design, operation or administration, medical industry could really use some frugal cost-cutting to provide healthcare services at a reasonable price. Dr. Devi Shetty and his vision helped many healthcare organisations from around the world to really dig deep and improve their overall healthcare quality. This book is just jaw-dropping at times. It illustrates some extremely simple methods to bring innovations from bottom to top.
Go read it..
Author 2 books1 follower
April 15, 2018
I had no expectations when I began the book in terms of content but wanted to be informed of whats happening in health care. A little while into the book, I realised that I read an article by the authors in HBR on reverse innovation.
But when I saw the picture of a pocket ultrasound machine, the concept of making things for less hit home, similar to Musk's question of how much should a rocket cost?
I have heard of Aravinda Eye Hospital and LV Prasad Eye Institute but not of Narayana Hrudayalaya. The book goes into great detail of how the chosen hospitals in India are able to provide great service at a fraction of international cost.
How can that be brought to US? There are already some institutions in partnership with learning from the above. Ascension, Iora Health, UMMC and other are examples that have been dealt in a very interesting fashion to make the reader understand what stops the US health care from innovating. Did you know of the certificate-for-need that needs to done before a new health center can show up?
There is an element of suspense with the HCCI, if the practices in india stand to the test of the Western model.
The book ends with a set of recommendations and questions to reduce the healthcare costs in US. It was revelatory to read that GM has to add more than a grand to the cost of the car, so they can maintain the rising health cost for their pensioners.
I learned a lot in terms of innovations. How a toymaker made a voicebox for $1 possible? Kanav Kohal's Swathya Slate.
I would recommend this book to all the people in healthcare, those interested in knowing the role of health coaches in keeping the costs down, cross-industry innovation, economies of scope, hub and spoke model for task-shifting.
Profile Image for Denise Morse.
984 reviews8 followers
October 12, 2018
Reverse Innovation refers to the concept of taking processes and findings from the developing world and applying to the developed world. In this instance, the country being focused on is India and how several health systems have created innovative ways of cost savings and improved access while maintaining or improving quality of care for all. The last section then focuses on how some United States hospitals and health systems have been able to utilize similar innovations to change the care model.

It was a really interesting read and I have already recommended to book to 10+ people within my organization. We are limited in the Unites States by the regulatory agencies, the payer relationships and the focus on MD pay/satisfaction. This is not always going to be true and the sooner we look at innovative models and have the legislation follow, the better we all will be.
Profile Image for Paul.
128 reviews5 followers
December 17, 2018
A must-read for anyone interested in our healthcare system, and what ails it. Tremendous insights into how providers in the developing world -- principally India -- are getting better health outcomes for a tiny fraction of the cost of what we are spending in America. And the reasons they are don't have anything to do with what you'd imagine, such as lower labor costs. We need to make the transition to value-based care and we need to figure out how to do it as quickly as possible. This is an important contribution to that conversation.
Profile Image for Greg.
381 reviews
May 6, 2018
There are so many things that US health care industry can improve on. This book presents paradigm shifting ideas on how to take innovation from India and apply it to US settings. I’ve learned a lot.

This is the first time I’ve learned that a hospital can charge very low price while maintaining high quality, not to mention gain profit in the process. If it’s possible in one hospital then it can also work in other given the right combination of factors.

Profile Image for Theodore Kinni.
Author 11 books39 followers
August 26, 2018
Depressing to read about how healthcare orgs in India can deliver high quality care at a fraction of the cost of US--and realize that it can never happen here because of strong lobbies and corrupt, idiotic politicians. Other than that, a compelling read
Profile Image for Leslie.
386 reviews10 followers
October 1, 2018
Really worthwhile read about reorganizing healthcare delivery to optimize efficiency. The goal is to "right size" healthcare using hub-and-spoke models that deliver commonly needed services everywhere and rapidly identify and refer complex cases to providers with greater training/specialization.
433 reviews7 followers
April 2, 2019
One of the best books on truly visionary changes in healthcare. Well written, timely, and consistent with where we all need to go.
Profile Image for Usama Albastaki.
210 reviews3 followers
March 28, 2020
The authors went through real examples of value based innovations in the health care around the world and provided evidence of how to implement these idea in The United States.
Displaying 1 - 11 of 11 reviews

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