The Economist magazine has named Dr Devi Prasad Shetty, one of India’s renowned heart surgeons and founder of Narayana Hrudayalaya, as a recipient of its 2011 Innovation Awards for his work in business-process innovation. Dr Shetty will receive the award at a ceremony in London on October 20.
According to the magazine, Dr Devi Shetty has applied Henry Ford’s philosophy — using mass-production techniques to cut costs through specialisation and economies of scale — to the Indian health care system.
“In 2001, he (Dr Devi Shetty) founded Narayana Hrudayalaya Hospital in Bangalore with 1,000 beds, compared with an average of 160 in American heart hospitals. Dr Shetty and his staff of cardiologists performed 6,272 heart operations last year, compared with 4,128 at the Cleveland clinic, a leading American hospital. Each operation costs around $2,000-$5,000, compared with $20,000-$100,000 in America,” The Economist has said.
The Economist has further said, “In 2008 the Narayana Hrudayalaya Hospital reported a 1.4 per cent mortality rate within 30 days of coronary-artery bypass-graft surgery, one of the most common procedures, compared with an average 1.9 per cent mortality rate in America. Over the next five years, Dr Shetty plans to increase the number of hospital beds to from 30,000, from 5,000 today. Despite serving a much poorer population, Dr Shetty’s privately owned hospital group earns an after-tax profit of 8 per cent, slightly above the 6.9 per cent average for an American hospital.”
“Dr Shetty has shown that better health care need not cost more. Better processes can make a huge difference. He is renowned for his skill as a surgeon, but we are recognising his additional talent as an innovator, by naming him the winner of our business-process innovation award,” Tom Standage, digital editor at The Economist and chairman of the panel of 29 judges, has said.