Shouldice Hospital Limited Case Study Analysis Outline

Swot Analysis Of Shouldice Hospital Limited

Issues/BackgroundShouldice Hospital limited was started in 1940 by Dr. Earle Shouldice for treating Hernia. The method of surgery adopted by Shouldice Hospital was unique in a sense that it introduced the concept of flow shop in carrying out surgeries alongwith simplicity in surgery. Because of this uniqueness and simplicity, the demand for surgeries at Shouldice increased and Shouldice has reached a point where it has to increase its capacity to reduce the wait times being faced by the patients. Presently, the hospital performs, on an average, 30 to 36 operations per day. The challenge is to devise a way of increasing the hospital capacity while maintaining the same quality standards, the role of government in the operations of the hospital and unauthorised use of Shouldice brand name by potential competitors. Assumptions:We have assumed that at all times ratio of patients coming from outside and local patients remain at 70:30 and surgeries has to be carried out maintaining the ratio.Analysis:Shouldice is already evaluating some options to increase the capacity of the hospital. Some of these are: 1. Increasing capacity of the hospital by increasing the number of beds and inculcating more staff.2. Operating on Saturdays and Sundays in order to increase the capacity by 20%.3. Expanding the capacity thereby entering in other specialist areas offering similar opportunities like eye surgery etc.4. Changing the scheduling of doctors.The way, the surgeries are carried out at Souldice, any patient needs to stay at hospital for at least 3 days. Appendix 'B' shows weekly maximum achievable throughput of 149 patients under the current operating cycle. Surgeon Capacity Analysis: In general, a typical first time surgery requires 45 minutes of surgeon time. Surgeon requi ...

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. Moreover, some of the hospitals and surgeons take benefit of the Shouldice method in their advertisement although they hardly perform it perfectly. This leads the hospital to become notorious. Shouldice is operating at its "best operating level" for a service company with limited flexibility in its plant, a specialized work force but are failing to meet all the demand for its chosen market niche. Adding additional capacity to meet the unmet market need may upset the...

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Case | HBS Case Collection | April 1983 (Revised June 2003)

Shouldice Hospital Limited

by James L. Heskett

Abstract

Various proposals are set forth for expanding the capacity of the hospital. In assessing them, serious consideration has to be given to the culture of the organization and the importance of preserving it in a service delivery system. In addition to issues of capacity and organizational analysis, describes a well-focused, well-managed medical service facility that may well point the way to future economies in the field.

Keywords: Expansion; Health Care and Treatment; Performance Capacity; Organizational Culture; Service Delivery; Growth Management; Strategic Planning; Quality; Social Enterprise; Health Industry; Canada;

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