Reverse Innovation in Health Care

2.

Breakthrough Business Model of Indian Exemplars

How Value-Based Competition Works

The business model of the Indian exemplars is founded on a common set of principles that work in a “virtuous cycle” to produce value-based health care that is high quality, low cost, patient-centric, and available to those who seek it (see figure 2-1). The central element—and in our minds the most important element—is each organization’s purpose, which is to provide high-quality, ultra-affordable health care to all, regardless of patients’ ability to pay (principle 1). The hospitals organize their assets and key people in a hub-and-spoke configuration that sends high volumes of patients to the hub for complex procedures and high volumes of patients to the spokes ...