In: Other Topics

Submitted By libranraj
Words 397
Pages 2
Considering all the available alternatives we have, performing surgeries on Saturdays without making any other changes in the facility is the best alternative available due to the following reasons:
• no fresh capital investment is required
• no new construction required
• revenue outweighs extra costs
• quality of the service will be maintained

By drilling down to numbers, there are 89 beds in total which are used for 5 days, therefore, sum of daily capacity = 89*5 = 445 and if we look at the best operating level, it is capacity maximum*7= 623
Current utilization rate is around 445/623 = 71.4%
And we start performing surgeries on Saturdays too, daily capacity = 89*6 = 534
Therefore, the utilization rate will be around 534/623 = 85.7%
As you can notice, there is an increase in the utilization of the current facility by almost (534-445)*100/445 = 20% at no extra costs.
This increase in utilization rate does not come at the cost of some new construction but utilizing the same already available resources thereby, not adding to extra costs.
As there is no fresh capital investment involved, current costs for surgeries can be maintained, hence, there is less risk of decrease in the number of the incoming patients which could have been an issue if the current costs for surgeries were increased while expanding to a new facility or in addition to a new floor.
However, this increase in the utilization rate also comes at a trade off as in order to perform some surgeries on Saturdays, surgeons, assisting surgeons as well as additional hospital personnel have to work an extra day which increases the costs in terms of employee salaries and facility operations but on the whole revenue will outweigh the costs by a good margin.
Whereas the senior doctors oppose this alternative, as senior Dr. Obney is going to retire anyways, this can be a good experience for…...

Similar Documents

Shouldice Hospital

...1. Problem statement With the increasing demand on Shouldice Hospital, the hospital management is looking to increase the capacity of the hospital to meet the demand without sacrificing the quality of service the hospital offers and has built up over 30 years. 2. Situation analysis Shouldice hospital is a well-known hospital for its specialization in hernia operations. Last year, Shouldice performed operations on 7500 patients. The greatly developed technique that the hospital uses and the excellent customer service that all staff members and doctors work hard to provide give the hospital a great reputation. Thisincreases demand on the hospital as its exceptional reputation increases patients’ desire to have their hernia operations performed at Shouldice hospital. As per the customer service, the patient should arrive one day before the operation and stay one day after for a total of 3 days. The first day gives the patient the opportunity to understand his or her situation by meeting with other patients and sharing their personal experiences. Inaddition, the patient pairs with another who has similar interests and hopes. As a result, the patient forgets their fear and enjoys their time. The journey does not end by leaving the hospital; Shouldice has a yearly event where all patients are invited to mingle, socialize, and see the doctors and staff. Currently the hospital has 90 beds, 12 full time surgeons, 7 part-time assistances, 5 operating rooms, a patient recovery......

Words: 1302 - Pages: 6

Shouldice Hospital

...Executive summary or Conclusion Shouldice Hospital was founded in 1945 by Dr. Earle Shouldice. It is a well known hospital in Ontario, Canada for its extraordinary service and care of hernia repair. The hospital is famous for lots of notable features in its service delivery system - superior surgery technique, effective recovery methods and comfortable and friendly environment with gregarious staff and service. Shouldice Hospital is a small 90-bed hospital with averaged 7,000 operations annually. However, the demand on the hernia operation is much grater than the Hospital’s current capacity. The management of Shoudice is thinking to expand the hospital’s capacity to service unmet demand. There are two expansion options to consider, one is to add Saturday to the existing five day operation’s schedule to increase capacity by 20%; another is to increase the number of beds by 50% by adding another floor of rooms to the hospital. But another opinion within the hospital is that further expansion of capacity might make it hard to maintain current high quality of service delivered. By analyzing, calculating and comparing current situation and the proposed options, the recommendations are made as below: Add Saturday operation to existing five days schedule to increase 20% capacity in the short term. This method is simple to follow and will solve the need of increasing demand with very minimal impact on current quality of service. Within in the next five years, add......

Words: 592 - Pages: 3

Shouldice Hospital

...Executive Summary Shouldice Hospital is the world’s leading centre of excellence in abdominal wall hernia repair . Shouldice’s reputation has been built on an exterior quality service and a high rate of successful hernia repair operation. A 99% success rate in hernia surgery has long been the benchmark for medical professionals internationally. Shouldice has averaged 7,000 operations annually, while last year it performed 7,500 operations. The patient number increased a lot in recent years. The hospital’s current capacity cannot meet extensive increased patient demand. The senior manager of the hospital needs to find the best option to expand the capacity to service unsatisfied demand while maintaining control over the high quality service delivered. Shouldice Hospital has a unique operation system to ensure its success. The notable features contributed to its service delivery system are innovative hernia repair technique; specialized program of care and recovery; and sociable atmosphere in the hospital. However, the utilization of overall capacity is not high. Current operation system does not run very efficiently. Shouldice needs to take steps to redesign its operation system to increase the capacity utilization. External analysis shows that Shouldice can use currently available high technology to further improve its operation quality. There are certain medical and health related laws to regulate hospital’s operation. In addition, Shouldice needs to commit to social......

Words: 406 - Pages: 2

Shouldice Hospital Case

...The Shouldice Hospital was created by Dr. Edward Earle Shouldice who is the inventor of the Shouldice method which is a hernia surgery designed to reduce recovery time and improve surgical results. The method was in response to men who couldn’t enlist in the military due to complications and it would quickly restore their physical fitness for military training. Due to high demand and scarce hospital space, Dr. Shouldice decided to open up his own hospital specializing in his unique hernia repair method. At the Shouldice hospital, only external types of hernias were performed creating a facility that offers expertise and specialization in their service. There are numerous characteristics of the Shouldice hospital that differ from most other hospitals. The most significant difference is the performance of a single operation and nothing else. This helps provide customers were assurance that they are being taken care of by knowledgeable professionals who have performed hundreds of similar operations. Not only were they getting a quality service, but a speedy recovery time helped to add value to their experience. In addition to the surgery received, the entire experience of a quick check in, a comfortable atmosphere, an opportunity to create relationships, well prepared meals, and the freedom to move around are all services which help to differentiate themselves from your typical hospital. This helps to relieve stress and anxiety many people have when getting a surgical......

Words: 1668 - Pages: 7

Shouldice Case

...Solution for Q1: Shouldice hospital is a leader in treating patients who suffer from Hernia. Shouldice achieved outstanding performance and reputation through its distinguished services to customers in terms of cost, quality, delivery and flexibility Cost: At Shouldice, Operating cost is not the only cost factor that attract customers. Besides, typical operation cost (including the patients stay at hospital) ranges from only $954 to $1029 compared to a total of $2,000 to $4,000 elsewhere. Even if we consider the transportation charges for patients who came to Shouldice from outside of Canada, it cost them less compared to the operating cost alone at other hospitals. Apart from this, Shouldice has various pre operation procedures that save the customer a lot of money. We can also consider the opportunity cost that the patients have saved as it takes only 4 days to recover at Shouldice rather than 8 to 10 days at other hospitals. Quality: One of the most important factors that have been the backbone for customer satisfaction is the supreme Quality of service. Shouldice hospital has unique operation technique, high success rate of the operations, and professionally designed process from remote examination to Post Operation recovery. For Pre Operation examinations conducted on patients in order to determine if the patient is really suffering from Hernia, If yes, are there any potential risks that the patient might have to face if he undergoes the operation?, Housekeeping......

Words: 1171 - Pages: 5

The Shouldice Method

...The Shouldice Method Abstract Dr. Earle Shouldice and his method of hernia operations and recovery methods are discussed. The discussion includes techniques pioneered by Dr. Shouldice, and the founding and operation of a facility bearing his name and utilizing his methods. Keywords: Earle Shouldice, Shouldice Hospital, Shouldice Method, hernia The Shouldice Method The Shouldice Hospital Limited case consists of the story of an Ontario farm boy who grew up to significantly impact the lives of thousands of hernia patients. Dr. Earle Shouldice grew up to become a prominent lecturer at the University of Toronto, ran a private medical and surgical practice, and was a successful researcher (Heskett, 2003, p. 1). He performed an appendectomy in 1932 on a seven year old girl who remained active post surgery. This led to his interest in early ambulation. Years later, Dr. Shouldice began taking a deeper look at the actions of post operative patients. Remembering the case of the seven year old girl, the doctor allowed wash room privileges to four men immediately following their surgeries (Heskett, 2003, p. 1). Ultimately, this led to Dr. Shouldice opening his own hospital facility which eventually consisted of an 89 bed capacity where he performed hernia correcting surgery using local anesthetic, encouraging comfortable movement and a specially designed post operative regimen (Heskett, 2003, p. 2). Shouldice Hospital treated only external hernias which were generally......

Words: 3358 - Pages: 14

Shouldice Hospital Limited

...Shouldice Hospital merupakan rumah sakit yang dikhususkan untuk melayani penyakit hernia selama lebih dari setengah abad. Rumah sakit ini terletak di Toronto, Canada. Kasus tentang Shouldice Hospital sangat menarik karena sistem mereka sangat unik tidak seperti rumah sakit pada umumnya. Pekerja di rumah sakit ini, seperti perawat, dokter, housekeeping sangat terbatas jumlahnya. Hal tersebut memang sengaja dilakukan agar pasien yang setelah operasi dapat ikut terlibat dalam kegiatan di rumah sakit tersebut. Shouldice Hospital memiliki konsep sebuah rumah sakit dengan keahlian spesifik yang kompetitif sehingga biaya lebih rendah, kualitas pelayanan yang lebih tinggi bagi pasien serta gaji yang lebih baik untuk loyalitas dari karyawannya. Spesialisasi dalam hernia perut bagian eksternal, dokter Shouldice menjalankan Shouldice technique yang dikembangkan oleh pendirinya yaitu dr. Edward Earle Shouldice. Teknik yang tepat ini telah menghasilkan ambulasi dini dan tingkat keberhasilan yang lebih tinggi (lebih dari 99 %) untuk pasien Shouldice Hospital selama lebih dari 55 tahun. Namun, apa yang membuat Shouldice Hospital begitu sukses adalah karena Shouldice Hospital didirikan berdasarkan pengalaman dokter Shouldice selama menjadi dokter. Untuk menyenangkan pasien, Shouldice Hospital memiliki konsep lebih seperti country club dari pada rumah sakit: suasana yang hangat dan santai dibandingkan dengan suasana rumah sakit pada umumnya, yaitu steril, dingin, dan menakutkan.......

Words: 376 - Pages: 2

Case Study of Shouldice Hospital

...CHRISTABEL APPIAH BBAM/ED/110795 CASE DY STUOF SHOULDICE HOSPITAL 2ND JUNE 2014 INTRODUCTION The Shouldice Hospital, located in Thornhil, Ontario is considered a global leader in hernia repair and recovery. The Shouldice Hospital was established in 1945 by Dr. Edward Earle Shouldice.   Major Dr. Edward Earl Shouldice saw many men denied enlistment into the army because they were deemed physically unfit to serve due to the need of hernia surgery.   Dr. Shouldice developed an innovative technique to repair hernias during this World War II era and has been known in the medical world for his superior methods ever since.   Shouldice created a method that included factors such as a local anesthetic, the abnormal nature of the surgical procedure itself, encouraging movement following the surgery, and many other postoperative methods used by his team. Using these factors, Dr. Shouldice developed a surgical technique for repairing hernias that were superior and much more efficient than other methodologies. HISTORY Dr. Edward Earle Shouldice graduated from the University of Toronto in 1916. During World War II, he was called to serve on the Medical Examining Board. Dr. Shouldice, a major in the army, found that many young men willing to serve their country had to be denied enlistment. These men needed surgical treatment to......

Words: 458 - Pages: 2

Shouldice Case Study

...ldi Case Study 1: Shouldice Hospital Limited 1. What has the leadership of Shouldice been excellent at? Shouldice leadership has been able to develop one of its surgical service lines, inguinal hernia repair, to an “internationally-recognized” brand. This has allowed Shouldice to dominate the market share and create a demand for its specialized services resulting in financial stability. The creation of this brand also has a strong influence with how the organization functions and how it is perceived. Levey (n.d.) reveals why branding creates organizational value. Levey expresses that “from a marketing or consumer perspective, it is the promise and delivery of an experience.” Shouldice leadership has also created an organizational culture that provides employees a sense of purpose, motivation, and opportunity to enhance their skills. Levey (n.d.) adds that a “brand is the greatest asset for uniting employees around a singular culture and mission.” 1. What has the leadership of Shouldice been excellent at? Shouldice leadership has been able to develop one of its surgical service lines, inguinal hernia repair, to an “internationally-recognized” brand. This has allowed Shouldice to dominate the market share and create a demand for its specialized services resulting in financial stability. The creation of this brand also has a strong influence with how the organization functions and how it is perceived. Levey (n.d.) reveals why branding creates......

Words: 385 - Pages: 2

Shouldice Hospital Estudio #4 Shouldice Hospital Integrantes: Ronald Batista 07-40635 Isabel Blanch 07-40657 Jocelyn Machado 08-10659 Eduardo Rocco 08-10947 Stephanie Ziritt 08-11220 Profesor: Manuel Martín Sartenejas, Febrero de 2013 1. CONTEXTO El hospital Shouldice (nombrado luego de su fundador, Earle Shouldice) es un centro clínico donde se operan únicamente hernias abdominales externas. El 82% de los procedimientos quirúrgicos que realiza el hospital son operaciones primarias (operaciones realizadas por primera vez que requieren intervenciones de 45 minutos de duración) y el 18% restante se compone de pacientes con hernias recidivantes, reparadas anteriormente en otra clínica. Earle Shouldice desarrolló una técnica quirúrgica para la operación de hernias que supera a otras técnicas en cuanto a procedimiento, anestesia necesaria, tiempo y recuperación del paciente. Esta técnica es utilizada por todos los médicos cirujanos que trabajan en la clínica, sin embargo, el método Shouldice no es un método público conocido por otros médicos fuera del hospital. El hospital se compone de 5 quirófanos, un laboratorio, sala de reanimación y un área de aprovisionamiento central donde se limpian y esterilizan los instrumentos quirúrgicos. Cuenta con oficinas de recepción y contabilidad, una gran sala de espera (con una capacidad para 50 personas), 6 salas de exploración, 3 oficinas administrativas y 89 camas para los pacientes. Actualmente, el Dr. Shouldice desea......

Words: 2501 - Pages: 11

Shouldice Case

...Shouldice Hospital: Operations Assessment Shouldice Hospital has been devoted to repairing hernias for over half a century. Although the Shouldice system has led to great competitive positioning, the hospital is falling victim to its own success. Demand for Shouldice services is so much higher than its current capacity of 89 beds that it is in a constant state of operations backlog, which grows by 100 patients every 6 months. Thus, Shouldice needs to find a solution to its single most critical question – how to expand the hospital’s capacity while simultaneously maintaining quality control of service delivery. The analysis below is designed to assess the current operations at the hospital, in addition to explaining our recommendation that Shouldice should invest $4MM in a new unit, which will increase bed capacity by 50% and require its surgeons to perform Saturday surgeries. As the financial analysis shows, this change will allow Shouldice to capture unmet demand without compromising its unique system of patient and employee care. Lastly, our recommendation will be also juxtaposed to other options we evaluated as potential solutions, but that neither make financial sense nor solve the current dilemma for the hospital. Hospital Overview 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......

Words: 2383 - Pages: 10

Shouldice Hospital

...© 2007-2008 Richard E Murphy Even Swaps - Shouldice Hospital 18 November 2007 1. How Successful is Shouldice Hospital? Shouldice Hospital is a highly successful business that maintains a focused service delivery system due to the success rate of its surgeries, its low employee turnover, its ability to maintain high quality standards, its ability to keep costs low and to remain profitable, and most especially the positive evaluations of its patients. Its strengths can be attributed to stringent policies of staff training in the Shouldice surgical method; the preservation of a communal atmosphere amongst both the staff and with the patients; the implementation of efficient and cost-effective facility operations; and high demand for operations. Its less successful aspects include: an inability to serve a considerable unsatisfied demand, as it is operating at near-full-capacity in its present facility; limited marketing; and an inability to prevent proliferation of its surgical techniques. 2. What Accounts for Shouldice’s Performance? a. Unique Operating Techniques Shouldice has vertically integrated nearly all operational functions in an effort to tightly control its distinctive techniques for performing hernia operations, as well as for pre- and post-operative patient care. The hospital has been remarkably successful in its ability to provide its patients with a quick, quality, low cost surgery in a comfortable environment, and has enjoyed......

Words: 2143 - Pages: 9

Shouldice Case

...Shouldice Hospital Case Assumptions 50 weeks Christmas Eve closed Resources Examination Room - 6 = 6.5*5 +4 = 36.5 Nurse Station- 2 Laboratory – 1 Maximum Bed Capacity-90 (No of days in a week=7 Available bed days =90*7 = 630) Lounge- 1 Common Dining Room -1 operating rooms -5 Recovery room-1 Surgeons (FT) – 12 =12 *35 =420 150/420 =35.7% (PT) -7 =7*17.5 =122.5 operations/surgeon =150/12 =12.5 (12 operations by 1 surgeon approx) operations/operating room = 150/5 =30 7000/50 =140/5 (days a week) = 28 | BEDS REQUIRED | CHECK-IN-DAY | MONDAY | TUESDAY | WEDNESDAY | THURSDAY | FRIDAY | SATURDAY | SUNDAY | Monday | 30 | 30 | 30 | | | | | Tuesday | | 30 | 30 | 30 | | | | Wednesday | | | 30 | 30 | 30 | | | Thursday | | | | 30 | 30 | 30 | | Friday | | | | | | | | Saturday | | | | | | | | Sunday | 30 | 30 | | | | | 30 | Total | 60 | 90 | 90 | 90 | 60 | 30 | 30 | Total =450 and 630 bed days therefore = 450/630 = 71.4 % 69.4% < 71% have to do something to the bottleneck option 1: Add one more day option 2: Increase no. of beds to 135 Option 1:...

Words: 563 - Pages: 3

Shouldice Hospital

...Case 5: Shouldice Hospital Limited (Abridged): Phần Uyên History of Shouldice Hospital: Dr. Earle Shouldice was interest in early ambulation stemmed, his medical license permitted him to operate anywhere, even on a kitchen table. As more and more patients requested operations, Dr Shouldice created new facilities by buying a rambling 130-acre estate with a 17.000-square foot main house in the Toronto suburb of Thornhill. After some years of planning, a large wing was added to provide a total capacity of 89 beds. In 1965, before Dr. Shouldices died, Shouldice Hospital Limited was formed to operate both the hospital and clinical facilities under the surgical direction of Dr. Nicolas Obney By 2004, 7.600 operations were performed per year The Shouldice Method: Only external (vs. internal) abdominal hernias were repaired at Shouldice Hospital. The most first-time repairs required 45 minutes. The recurrences and very difficult repairs required 90 minutes. The end result of Shloudice method reinforced the muscular wall of the abdomen with six rows of sutures under the skin cover They used sleeping pills, pain killer plus a local anesthetic, a injection of Novocain in the region of incision, this allowed immediate post-operative patients ambulation and facilitated rapid recovery The Patients Experiences: Approximately 10% of Shouldice patients came from outside the province of Ontario, most of these from the United States. Out-of-town patients were often diagnosed by......

Words: 3985 - Pages: 16

Case Shouldice

...Pamantasan ng Lungsod ng Maynila Graduate School of Management Production and Operations Management I Dr. Cecile Santiago Capacity Planning at Shouldice Hospital Submitted by: Caneja, Andrea Nichole Canicosa, Shirly Palma, Nerissa Sajise, Rina Vidallon, Allen TITLE : Capacity Planning at Shouldice Hospital VIEWPOINT : The Hospital Administrator TIME CONTEXT : At Present I. PROBLEM STATEMENT Deciding on ways to meet the unsatisfied demand by expanding the hospital’s capacity, while still maintaining control over the quality of service delivered. How to increase the hospital’s capacity to serve more patients while maintaining control over quality of service delivered as well as sustaining existing high level of employee and patient (customer) satisfaction? II. STATEMENT OF THE OBJECTIVES To clear the backlog by increasing the capacity of hospital services to 20% with no dilution in the quality of services rendered within 8 weeks. III. AREAS OF CONSIDERATION Strengths: 1. Unique and defined surgical procedure 2. Facility that encourages movement 3. Up to date equipment 4. Less time taken for operations as well as for recovery is lower than industry average 5. Full time experienced surgeons 6. Known worldwide for hernia repairs specialization 7. Loyal patients coming from 80 different countries Weaknesses: 1. It only accepts patients with......

Words: 645 - Pages: 3