Health

Making the most of little: India explores new models

Latin America

Latin America

India faces many of the same challenges as Brazil and provides an example of an innovative approach to healthcare. The country is leveraging its role as a contract researcher and manufacturer of generic drugs to increase the value of its output, for example by developing branded generic drugs and new formulations for existing drugs. Through “reverse pharmacology” it is developing and launching medications based on its traditional treatments at a fraction of the cost of drugs developed by Western companies—US$50m, compared with US$1bn respectively. Indian companies such as Glenmark are already operating in Brazil and looking to expand this business model there.

India has also made innovations in the provision of healthcare. The 1,000-bed Narayana Hrudayalaya Hospital in Bangalore provides high-quality yet very inexpensive heart surgery. Its surgeons, who are salaried, carried out 3,174 cardiac bypass surgeries and operated on 2,777 paediatric patients in 2008, more than twice the volumes achieved in leading specialised hospitals in the US. Their success rate is higher than that of their counterparts in New York State, and the mortality and hospital-acquired infection rates equal those of the best hospitals worldwide. The hospital reports a 7.7% profit margin, higher than the average for US hospitals, but charges US$3,000 or less per surgery, compared with US$5,000-7,000 in private hospitals in India and up to US$50,000 in the US. With further changes in processes, negotiations with suppliers and creative partnerships, Narayana Hrudayalaya plans to reduce its costs even further.
By applying such an innovative perspective, Brazil can leverage its own competitive advantages to raise its global profile.

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