Guidelines for Preparation: 1. How successful is the Shouldice Hospital? 2.

Analyze Market, Service Concept, Operating Concept, and Service Delivery System for Shouldice Hospital in detail. 3. How do you account for its performance? 4. As Dr. Shouldice, what actions, if any, would you take to expand the hospitals capacity? 5. How would you implement changes you propose?

Intangibility

Perishability

Hetrogeneity Specialized Technique

Simulatanity

Arrival Local Others

Request

Capability

Effort

Subjective Preference

ouldice Hospital in detail.

Subjective Preference

Day 1

1:00-3:00 pm

Other Patients (60%)

Local Patients (40%)

Waiting Room (20 mins): 30-34 patients

Initial Examination (20 mins):6 examination rooms

Waiting outside accounting office (15 mins)

Accounting office: Health insurance coverage check

Nurse Station: Blood and urine check (10 mins)

Patients occupy alloted room

5:00 pm

Orientation by Nurse

5:30-6:30 pm

Dinner at 100-seat dining hall

9:00 pm

Recreation time and tea & cookies

9:30-10:30 pm

Bed Time

9:30-10:30 pm

Bed Time

Day 2

5:30 am

Patient awaken and given preop seditation

Patient administered Analgesic in preoperating room

7:30 am

Anasthetic given and operation starts: 45 mins

Exercises, rest and other activities all day

9:00 pm

Dinner

Bed Time
Day 3,4

6:00 am

Patients awakened

Breakfast, Exercises,Clips loosened or removed

Exercises, rest and other activities all day

Dinner

Bed Time

Day 5

Patient Discharged on Morning

Time line Patient Arrival Time 1:30

Local Patients (40%)

34 patients

1:50

6 examination rooms

2:10

Weight problem or no hernia, sent home

(15 mins)

2:25

coverage check (10 mins)

2:35

Rejected

ne check (10 mins)

2:45

ted room

2:50

dining hall

5:30

a & cookies

preop seditation

n preoperating room

on starts: 45 mins

ctivities all day

sened or removed

ctivities all day

n Morning

Waiting Room Capacity 50 Arrival 30 at instant 20 min wait 2hr 18hr 6 Examination Room

ernia, sent home

6 Surgeon

Preoperating Room

Accounting Office

2 accountants

2 Nurses

Preoperating Room

5 Operating Room

5 surgeon 1 patient per hour 35 patient per day 5*4+5*3

per unit Earnings Surgical fees Primary General Anesthic Assistant Surgeon $ $ $ $ 450 75 60 111

Stay fees Total Earnings

Expenses Salaries

Operating Expenses

Surgeons Assistant Surgeons Nurses Anesthatician Laundary boys Accountants Housekeeping Cook Food Cost Operating Room Hospital Budget Clinic Budget

$ $ $ $

50,000 60 20,000 300

$ $

1.10 30,000

Total Expenses Gross Profit Surgeon Bonus Staff Bonus Net Profit

quantity

total 6850 $ 0.18 $ 6850 $ $ $ 3,082,500 92,475 411,000 3,041,400 6,627,375

ref page

4 day * 6850

0.51*6850

12 $ $ 32 360 $ 2 3 3

600,000 209,610 108,000

7 7 9 7

400 meal*350 days

$ 6 $ $ $ $ $ $ $ $

154,000 180,000 2,800,000 2,000,000 6,051,610 575,765 500,000 65,000 10,765

8 8 10 10

7 9

No. of Patients

Running days Operation days

365-15 350-2*50

350 250

No of Operations per year From no. of Surgeons From per day load Year 1982

ref page 12*600 33*5d*50w 7200 8250 6850 7 6 2

Parameters Shouldice Other Hospitals Ref Page Operating Cost $ 95.00 $ 2000-4000 Transportation $ 200-600 No. of Days at Hospital 5 10 Time taken per operation 45 min 2 Recurrence Rate 0.80% 10% 2 Operations per surgeon per year 0-60 2 600