Shouldice Hospital

“Shouldice Hospital – A Cut Above”

1. How well is the hospital using its beds? Expand.

The hospital is using its beds at a 72% capacity. Using the formula: Capacity utilization rate = capacity used/best operating level, these are the following beds used per day and per week. Shouldice beds are only fully utilized three days per week, but doctor operate five days: so the question of utilization has at least these two perspectives.

Monday: 60/89 = 67%

Tuesday: 89/89 = 100%

Wednesday: 89/89 = 100%

Thursday: 89/89 = 100%

Friday: 60/89 = 67%

Saturday: 30/89 = 34%

Sunday: 30/89 = 34%

Average capacity utilization rate per week: 71.7%

2. Develop a similar table to show the effects of adding operations on Saturday. (Assume that 30 operations would still be performed each day.) How would this affect the utilization of the bed capacity? Is there capacity for additional patients?

Per the table below, if surgery is added on Saturday and held at 30 per day, then added beds are wasted capacity. Beds are available on Saturday under current operating policies.

Utilization = 540 / (90*7) = 0.857 = 85.7%

Bed capacity would change on Monday, Saturday and Sunday. There would be an increase in the bed capacity utilization from 66%, 33%, 33% to 100%, 66%, and 66% respectively. Also, the total bed capacity utilization rate averaged in a week increased from 71.7% to 85.7%. The hospital’s capacity is enough to accommodate the additional patients; although the capacity cushion is now lower at 16.67%.

3. Assume that the hospital capacity is increased by 50%, how many operations can the hospital perform per day? Outline your assumptions and illustrate your calculations.

A capacity increase of 50% would mean 45 surgeries Monday, Tuesday, Wednesday, and Thursday to fully utilize facilities 4 days per week.

If 30 surgeries are performed each day in 5 rooms, then 6 are performed in each room. To perform 45 per day, the rooms will need to be occupied 9hrs...