Shouldice Hospital Case Study

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1.0Description of Situation and Identification of Problems 1.1 Service
The Shouldice Hospital competitive advantage is that it only conducts external hernia operations and is specifically designed and operated to provide the highest probabilities for successful treatment with “country club like” patient service. Hernia operations typically have a 90% success rate, with Shouldice hernia operations boasting over a 99% success rate. The Shouldice competitive advantage can be summarized into: Surgical technique: layered/increased sutured repair technique conducted via local anesthesia Postoperative regimen and facility design supporting early/ongoing ambulation and socialization Comprehensive and “country club like” location patient service HR structure supporting engaged experienced employees with high morale As shown in Exhibit 1, the clinic generates nearly $3M in annual profits. The Shouldice model is a very profitable model while delivering a higher quality hernia repair service at half the cost. Referring to Exhibit 2 and 3, a Shouldice patient total cost of approximately $3000 compares to the industry average hernia repair total cost of approximately $6000.

1.2 Description of Process
The patient experience at Shouldice consists of an orientation, tea, friendly supportive staff throughout the stay (hernia operation / recovery) all while patients socialize and relax. This is followed by free annual checkups and annual patient reunions at half the cost. A Shouldice Hospital process flow chart is provided in Exhibit 4, followed with a very regimented and efficient protocol, reinforced with training, work procedures, intensive management/oversight and is supported by experienced staff. When evaluating the process, a current bed capacity bottleneck is identified with occasional early discharges and hostel beds used for overflow.

1.3 Service Facility
Shouldice Hospital is conveniently located close to metropolitan Toronto, just 15miles...
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