Shouldice Hospital

Background

Shouldice Hospital is a facility in Canada known for its expertise in hernia repair. This is the only operation it performs using Dr. Shouldice’s superior technique developed in WWII. What makes its delivery system successful is contributory to three things: (1) acceptance of patients with uncomplicated external hernias only; (2) patients are subject to early ambulation; and (3) the special country club atmosphere. The hospital facilities include a patient recovery room (with a capacity of 90 beds), five operating rooms, a laboratory and six examination rooms. Currently, the management of Shouldice is thinking of expansion to increase profits by adding one more day of operations (Saturday) or expanding hospital capacity by adding a floor.

Analysis

Current operations allow Shouldice to discharge patients within three days of the procedure. Current demand is around 150 operations per week, or approximately, 30 a day. The staff includes 12 full-time surgeons assisted by one of seven part-time assistant surgeons. Each operation takes an hour of preparation and performance and they can operate on four patients a day, making an eight-hour work day. Surgeons arrive at around 6AM (operations start at 7:30AM) and leave by 4PM but are available on call once a month and 5 times a year (365 days / 7 days per week/ 10)on every 10th weekend.

Total capacity assuming part-time assistant surgeons may be hired at any time is 40 operations per day (five operating rooms x 8 hour working day / 1 hour per operation). If the number operating rooms can be expanded to 12 and surgeons do not have any breaks, they will be able to perform 96 operations/ day. This number goes down to 48 operations if we compute in the human factor (because surgeons are not machines and need rest).

Adding Saturday to the Week

Beds still number 90 but the number of operations per week will increase to 180 (from: 150). Capacity (beds, surgeons, operating rooms) will be able to accommodate...