MEMO To: Alan O’Dell – Hospital Administrator Date: 18 September 2013 Subject: Sustainable Growth Strategy As consultants for Shouldice Hospital Limited‚ we see that the major problems confronting the hospital are capacity management while maintaining quality‚ technique being copied by other doctors and succession planning. Although the hospital has good reputation and quality service‚ it is not able to service customers due to lack of capacity as well as conflicts among
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DSE7100 Managing Service Operations Discussion of Shouldice Hospital Limited Case Assignment #2: Questions for Shouldice Hospital Limited 1. How Successful is the Shouldice Hospital? 2. How do you account for the success of the hospital? 3. What is the strategic service concept of Shoudice Hospital? How are the elements in the service systems designed and managed to support the strategic service concept? 4. As Dr. Shouldice‚ what actions‚ if any‚ would you take to expand the hospital’s
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1. Model Shouldice Hospital as a processing operation with products‚ attributes‚ and resources. A. Process Structure: a. Input: Approved patient entering the clinic the day before operation b. Output: Successful patient leaving the facility c. Flow Unit: The patient going through the surgery process d. Network of activities and buffers (not sure?): The whole process with its wait times. Waiting room (20min wait time)‚ examination (15-20min)‚ waiting room for accounting office (5-15min)‚ accounting
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1. How successful is the Shouldice Hospital? Generate a P&L statement using available information from the case. Treat each of the two operations—hospital and the surgery—separately. Hospital: Revenues (4 days X $111/day x 6‚850 patients/year) 3‚041‚400 Cost 2‚800‚000 Profit: 241‚400 Clinic: Revenues ((($450 + 60 + 75) X 0.20) X 6‚850 patients/year)) 3‚596‚250 Cost 2‚000‚000 Profit 1‚596‚250 Total Profit 1‚837‚650 2. How
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Shouldice Hospital Case Analysis Question 1. How successful is the Shouldice Hospital? Generate a P&L statement using available information from the case. Treat each of the two operations – hospital and the surgery – separately Compared to other medical institutions that provide a wide array of medical procedures‚ Shouldice Hospital specializes in one procedure for patients that suffer from abdominal hernias. This specialization allows each doctor at Shouldice Hospital to perform approximately
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e. The regulatory environment in Toronto f. Rooms g. Satisfied operators Analyses 2. Why do patients choose Shouldice Hospital over other hospitals? What are the benefits received by Shouldice’s patients that are different from other hospitals? Answer: Patients choose Shouldice Hospital over other hospitals because the service they get from Shouldice is far away better than other hospitals. The benefits they received are as following: a. Appointments are driven by patient
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1. How well is the hospital currently utilizing its beds? (60+90+90+90+60+30+30)/ (90*7) =450/630=71.4% The hospital is currently utilizing 71.4% its beds 2. Develop a similar table to show the effects of adding operations on Saturday. (Assume that 30 operations would still be performed each day.) How would this affect the utilization of the bed capacity? Is this capacity sufficient for the additional patients? Check-in Day Monday Tuesday Wednesday Thursday Friday Saturday Sunday Monday 30 30 30
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MANAGEMENT CASE 1 Shouldice Hospital Introduction Shouldice Hospital‚ set up in 1945 by Dr. Earl Shouldice‚ is located near Toronto. It follows the business model of focus on a single standardised service for a narrow target of consumers‚ rather than to provide customised solution (as in a general clinic or hospital). It focuses on providing quick‚ convenient‚ and reliable cure for external types of abdominal hernias. The Hospital uses its own technique‚ called the Shouldice Method. It is famous
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service culture in Shouldice. Training in Shouldice technique is important since the procedure could not be varied. The patients‚ who were experienced hernia operation in Shouldice‚ can return their normal daily lives much before the other patients that had experienced the similar operation at other hospitals. And the recurrence rate for all operations performed at Shouldice is about 0. The Unique Selling Point of the Hospital “There is No Substitute for Experience”. Shouldice Hospital has been
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uShouldice Case Case 1: Shouldice Hospital Limited Q1: How does shouldice compete? In other words why do patients come to shouldice hospital? Two main reasons drive customers into choosing Shouldice over other competitors/hospitals. The first is quality‚ and the other is cost. talking about quality of the Shouldice “product” includes both‚ quality of the operation‚ and quality of post operation activities and overall services offered by Shouldice. The Shouldice method is a focused‚ specified
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