Profound economic and social forces are challenging healthcare organizations to deliver higher quality care that is more patient-centered and evidence-based. We describe a novel way in which organizations can respond to the challenge of patient-centered, evidence-based innovation--an in-house learning laboratory for healthcare delivery services and processes. Mayo Clinic's SPARC Innovation Program, initiated in 2002 and fully operational in 2005, facilitates the generation of new ideas, tests prototypes, and disseminates the knowledge required for systemic, repeatable organizational innovation. Results from the innovation program suggest that healthcare organizations can successfully develop and realize value from such learning laboratories.