Shouldice Hospital Case Study Calvin Barron Liberty University March 2‚ 2010 Respectfully submitted to Prof. Scott McLaughlin Overview The Shouldice Hospital serves as a glaring example of extraordinary service and care for the impaired and needy. From carpeting and soft lighting to doting personal care from the staff‚ the Shouldice experience sets a standard of excellence for the industry. Dr. Earl Shouldice displayed an early desire for medical understanding with an age
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Case Summary of Shouldice Hospital Ltd. Shouldice Hospital is a “focused factory:” a hospital with a specific area of expertise that gives it competitive strength resulting in lower cost‚ higher quality service for its patients‚ and better pay for and loyalty from its employees. Specializing in external abdominal
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The Shouldice Hospital has been very successful during the past years and has grown to become the “world’s leading centre of excellence for hernia repair”. Based on research‚ • Shouldice has expanded their room capacity to 89 beds with 5 specialized operating rooms and a staff of about 150 people (nurses‚ doctors‚ administrative) that collaborate together to provide a higher quality health care service to the patient. • The innovative method used for sedating a patient with a sleeping pill
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1. Executive Summary Shouldice hospital is a specialized hospital in the repair of external abdominal hernias in Canada. The hospital was established by Dr. Shouldice the founder of a new and superior surgical technique‚ now known as the Shouldice method‚ for repairing hernias which yields better medical results as well as a significantly shorter recovery time. The Shouldice Hospital is a successful organization and admired by most of the people who had relation with it or who have heard of it
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Shouldice Hospital Limited 1. How well is the hospital currently utilizing its beds? Shouldice Hospital is currently utilizing its beds quite well. Under the Shouldice method‚ they are operating with 90 beds‚ admitting 30 patients per day‚ and not accepting any new patients on Saturdays. Each patient admitted generally stays in the hospital for 3 days and is discharged on the fourth morning. By examining Exhibit 4.7‚ it is apparent that the hospital’s capacity utilization is roughly 71.43%
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SHOULDICE HOSPITAL LIMITED The problem under analysis is how to best increase the hospital’s capacity to serve more patients while at the same time maintaining control over quality of service delivered as well as sustaining existing high levels of employee and patient (customer) satisfaction. SWOT analysis Strengths  Unique and defined Surgical procedure (could not be varied)  Facility that encourages movement  Up to date equipment  Less time taken (time
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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 o Use of local anesthetic o Nature of procedure • Design of facility o 130 acres o 17‚000 square feet o 89 beds • Dr. Casim Degani‚ internationally recognized authority • Specialized procedure • Patients administered anesthetic
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Case Study Shouldice Hospital Limited 09. November 2011 1. How does Shouldice compete? Identify at least three characteristics of Shouldice´s operations that contribute to its competitiveness. The four most important influences on competiveness in a company are cost‚ time (speed)‚ flexibility and quality. Cost and time should be held as small as possible‚ flexibility and quality as high as possible. In the Shouldice case we added another category: customer service. For the categories
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Increase capacity by 20% Increase revenue Increase bonus pool No need for capital outlay Son‚ surgeon‚ 50% owner‚ Board member‚ Executive Input into design Daughter‚ Board member‚ Executive Husband is on Board? Input into design Chief Surgeon 60-Need successor Lot of demand Better margins and reward for quality/service compensation same and bonus intact Moral improves Increase revenue to create fund Some disagree with higher cost Does not address increased demand Pros Expand to other markets Pros
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on the above criteria‚ the following options can be generated. I. The hospital can continue with the current scale of operations i.e. Maintaining Status Quo II. The hospital can plan to scale up the level of operations. This can be done in 3 different ways A. Start operating on Saturdays which increases the capacity by 20% B. Expand the hospital building by adding one more floor C. Open new hospital in the USA‚ and thereby expanding operations to new geographical locations
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