The Narayana Healthcare Model

Narayana Hrudaayalaya is a thought provocative case on creating highly efficient delivery system with innovative ways of cost cutting and yet providing outstanding quality of care. There are many things NH is doing to make health care affordable, like smarter capital management, Daily report and smart use of data, using assembly line concepts for surgery, telemedicine programs, everyone is well informed of cost of choice and procedure, cheaper medicine and bundled services.
One striking aspect of Narayana health care system is excellent operational efficiency in every aspect of healthcare. Achieving similar operational efficiency in US Healthcare system is possible and it will be significant cost saving. According to National Health Expenditures
US healthcare system can take advantage of the “focused factory” approach of Narayana Healthcare Model. Focused factory approach relies on production style management for patient throughput. For this purpose, in Nararyana Hrudaalaya, hierarchy of talent is incorporated into system. More specialized and critical process/surgery are performed by highly specialized or senior doctor while rest of the work will be done by junior doctor or nurses based on relevance and experience. Operation and Maintenance of equipment are assigned to unskilled and partially skilled labors after adequate training. Clayton M Christensen, in his interview with Mark D. Smith from Harvard business review, highlighted the importance of de-skilling or right skilling system, to evolve business model. With implementation of hierarchal talent and right skilling at NH's Bangalore facility, a surgeon, on average, contributes to four surgeries per day. This approach has many benefits for the system overall. First marked benefit is cost saving, without compromising quality of service. Doctors and Surgeons will be able to make best use of their medical and surgical skills they are uniquely qualified for. Non-critical health care can be provided by advance health