Shouldice hospital
CASE ANALYSIS: SHOULDICE HOSPITAL LIMITED
Executive Summary:
The Shouldice Hospital, Ontario, Canada is a pioneer in the field of treating patients suffering from external abdominal hernia. The speedy ambulation coupled with its reasonable price rates leads to satisfied patients publicizing the hospital by word of mouth.
The issues that confront the hospital management are:
·Deciding on ways to meet the backlog of operations, by expanding the hospital's capacity, while still maintaining control over the overall …
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…For hospital= $ 2.8 million
For clinic = $ 2 million
Total budget for operating costs= $ 4.8 million
Total number of operations performed in 1982 = 6850
Hence Average Cost per patient borne by the hospital = $ 4.8 million / 6850 = $ 701
Exhibit 3 : Net profit increase using proposed solution
Net profit per patient = 1029 - 701
= $328
By working on Saturdays we are increasing the working days by 52.
No of operations per year = 6850
No of working days per year = 261
Hence, number of operations per day= 6850/261
= 27
Hence net profit increase per year = 328 * 27 * 52
= $ 0.46 million
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