Shouldice Hospital

Shouldice Hospital Limited

Case Report for Operations Management

Term II, PGP 2010-2012

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Contents

Introduction: 3

Problem Analysis: 4

Present Status of Capacity 4

1. Operation Theatres 4

2. Hospital Beds 5

3. Full Time Surgeons 5

Evaluation of Options 5

Option 1: Increase bed capacity by constructing a new floor 5

Option 2: Operating on Saturday 6

Option 3: Construct a similar hospital in US with same capacity 8

Recommendations: 8

Exhibits: 9

Exhibit1: 9

Exhibit2: 9

Introduction:

The Shouldice Hospital Ltd. represents a success story of consumer friendly innovation. The hospital carries forward the legacy of Dr. Earle Shouldice, who had developed a new technique for performing external hernia operations. The method differentiates itself from others on three parameters:

1. Early ambulation: the recovery time for patients is 4 days as against 5 to 8 days

2. Very low recurrence rate: 0.8% as against the average 10%

3. Low Cost: around $ 1050 as against the average $ 2000 to $ 4000

The hospital, located in Ontario, Canada is specialised for hernia operations only. Their surgical staff is trained to perform the Shouldice method. Compared to industry average of 25-50, their surgeons perform at least 600 hernia operations per year.

The popularity of Shouldice has been based completely on word-of-mouth publicity. Patients are generally referred by past patients and physicians. To encourage this further; the hospital organizes an annual reunion of past patients and also provides free of charge health check up.

Being in a high customer contact service industry, Shouldice takes all efforts to make it a pleasurable experience for consumers (patients). Typically, a patient, after preliminary confirmation of hernia, is allotted an operation date. The patient has to report on the previous day and get himself checked for hernia and fitness to undergo a surgery. The confirmed patients are then...