Shouldice Hospital Case

Shouldice Hospital Case

1. Shouldice Hospital Processing Operation

Shouldice Hospital produces one single product; external hernia procedures. The Shouldice method is much simpler than other methods, and allows for a faster recovery for patients. The cost of the procedure is roughly $1,029 per patient, unless the patient does not need an anesthetic, in which case the cost would be $954. Patients spend roughly 4 days at the hospital, unless they opt for a 5th day to merely enjoy the facilities. There are two types of external hernia procedures done at Shouldice Hospital; primary (first time) procedures and then repairs of existing external hernia surgeries. 82% of the procedures done are primary, and the other 18% are those repairs of previous surgeries. Shouldice Hospital had a much lower recurrence rate that the full figure of the US at the time, with Shouldice Hospital’s recurrence rate at .08% and the US rate at 10%.

The Shouldice Hospital campus is a 130 acre estate with a 17,000 square foot main house containing the hospital and the clinic. The hospital labor force consisted of 19 doctors, 1 anesthetist, 40 nurses, a kitchen staff of 3, laundry staff of 2, housekeeping staff of 3, one administrator, and an accounting and secretary staff (the text does not define the number of account and secretarial employees).

2. Competitive Priorities

Patients

There is definitely a focus on fellowship at Shouldice. Most of the time, patients with the same background or interests were put into the same room so that they interact and be comfortable. A lot of importance is given to walking immediately after the operation in order to help patients gain confidence that they can do it. This is a unique practice, and psychologically helps the patients recovery quickly.

Doctors and Staff

Nurses have it easy at Shouldice Hospital. Shouldice nurses spend a larger portion of their time in counseling activities and have a much lower nurse to patient ratio...