Lessons From India in Organizational Innovation: A Tale of Two Heart Hospitals

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The most up-to-date version of this piece can be found in the Duke Law Scholarship

published at, 27 Health Affairs 1260-1270 (Sept./Oct. 2008)


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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health care reform, organization innovation, hospitals, India, tiered pricing