The US steel industry at one stage not that long back seemed invincible. This was primarily driven by demand-side economics mainly from the automotive and consumer electronics businesses. Now allthree have been disrupted thanks to cheaper foreign competition. The American healthcare is one ripe for such kind of disruption as costs are spiraling high. Regulation too is excessive. That is where Narayana Health’s business innovation could prove to be the first nail in the coffin. It’s Health City in Cayman Islands (HCCI) is not far from US shores, yet outside the regulatory boundaries. Concepts of reverse innovation have been brought in from India where the founder is originally from. The average cost per bed for building HCCI stands at a third of US prices. Even FDA endorsed medicines could be purchased at lower prices thanks to relations back home in India being leveraged. Back-end operations such as HR, finance and radiology were outsourced to Indian units. Certain units were even home-produced such as medical oxygen being made inhouse. This isn’t strictly medical tourism, but being so close to home, could en up being a major disrupter.

Source:https://hbr.org/2018/06/is-this-the-hospital-that-will-finally-push-the-expensive-u-s-health-care-system-to-innovate

Uploaded Date:04 July 2018