Shouldice Hospital Analysis

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How does Shouldice offer a superior value proposition relative to its customers, remain successful, and balance low cost with high quality?

Data Summary

Benefits purchased by the consumer:
Shouldice Value Proposition
Early ambulation following surgery
oUse of local anesthetic
oNature of procedure
Design of facility
o130 acres
o17,000 square feet
o89 beds
Dr. Casim Degani, internationally recognized authority
Specialized procedure
Patients administered anesthetic in operating room
Upon completion of operation: patients are fully aware of what is going on •Counseling activities
Experienced staff

Shouldice way compared to other hospitals
oPractically cut in half
oCarpeted floors
oNo Bed Pans
Lower Costs
Administration of the anesthetic
Being aware of what is going on after surgery
Target Group of Customers: Commonalities
Only external abdominal hernias
Recurring hernias repaired elsewhere
Roommates have similar jobs, backgrounds, or interests

Service Delivery: Production Process
Service Blueprint attached

Five Dimensions of Service Quality
oProblem resolution
oWillingness to listen
oImmediate attention
oTrust & Confidence
oLike family
oSpecialized attention
Employment at Shouldice: Compared to Other Hospitals
oRatio 1:15
oOther Hospital 1:4
oCounseling Activities occupy a good portion of their time
oWaiting list for employment
o“Watch kids grow up”
oOn call
o15% higher income
ofew elect to leave
Administration & Staff
oNon union
oLow turnover
oNo Fire Policy
oCross Train
Growth Alternatives
Saturday surgeries
Expand # of beds
Toronto expansion
United States expansion
Specialize in other fields
Immediate attention to “copiers”

Data Analysis

Benefits purchased by the consumer: Shouldice Value Proposition as compared to other hospitals

Value is added into every aspect of Shouldice Hospitals sensible service culture. The service offered is the expertise of the doctors, the dedication of the staff, and the overall feel of the atmosphere which, in turn, makes customers feel comfortable and helps in the patients speedy recovery. •Shouldice Hospitals biggest value proposition is quality through experience. For over 60 years Shouldice Hospital has been repairing hernias for hundreds of thousands of patients (with over a 99% success rate) and the number is rising daily. This value proposition is definitely being utilized. On their surgical team is Dr. Casim Degani, an internationally recognized authority. The surgeons that work there make a lifetime commitment to the company because after they have been away from other disciplines for so long they loose touch with them. There is no alternative to experience, and since the doctors stay and at Shouldice for countless years, their value proposition is far exceeding what is promised.

The procedure itself is one of the many unique aspects the hospital offers. With the use of a local anesthetic combined with the nature of the procedure itself, allows early recovery following surgery. Recovery time is practically cut in half when compared to other hospitals. Also, the local anesthetic is administered in the operating room, compared to other hospitals completely sedating you before you even enter the operating room. After the operation patients are encouraged to step off of the operating table and walk to the post-operating room, allowing the exercising needed for full recovery to begin immediately. This procedure would never be carried out at other hospitals. The simple fact that patient is awake and is fully aware of what is happening around...
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