Essay on Shouldice Hospital Operations Management

Shouldice Hospital Operations Management 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 for a relatively short post-operative recovery period. Description 1. Shouldice Hospital provides low-cost medical service in its area of specialization. Use of the Shouldice Method allows patients to recuperate fast (patients get†¦show more content†¦There is time-based rotation of teams and frequent consultations among doctors. 5. A patient at Shouldice requires minimal post-operative care. Immediately after an operation, patients are encouraged to move about and carry on their day-to-day activities with minimal physical assistance. 6. Employees at the Shouldice have very competitive pay scales. The remuneration has both fixed and bonus components. There is no organization chart, and administrative employees are cross-trained to take over each others work if required. Nobody is fired. 7. The Hospital relies entirely on word-of-mouth advertising. It performs 145-165 operations per week. In spite of this, there is a backlog of scheduled operations that is as large as 1200 in 1982. 8. Approximately 42% of patients come from the United States. A typical surgery at the Shouldice costs approximately $1029. Operating Costs for the hospital and clinic are close to a total of $4.8 million. Revenues are close to $6.8 million. Thus, operating profits are close to $2 million annually. Unique Characteristics 1. High Volume Focused Service - only external types of abdominal hernia repaired and mostly primaries; 6850 operations performed in a year in 1982. 2. Unique Surgical Technique Ââ€" Shouldice Method: separation of muscle layers, more sutures and no screens/meshes 3. Lower Operating Time - 45 minutes for first-time repairs (primaries) and 90 minutes for repairing recurrences 4. Lower cost of operating patients -Show MoreRelatedShouldice Hospital Case Study Essay1588 Words   |  7 Pagesof Situation and Identification of Problems 1.1 Service The Shouldice Hospital competitive advantage is that it only conducts external hernia operations and is specifically designed and operated to provide the highest probabilities for successful treatment with â€Å"country club like† patient service. Hernia operations typically have a 90% success rate, with Shouldice hernia operations boasting over a 99% success rate. The Shouldice competitive advantage can be summarized into: ï‚ § Surgical technique:Read MoreShouldice Hospital Case1459 Words   |  6 PagesCASE : SHOULDICE HOSPITAL – A CUT ABOVE â€Å"Shouldice hospital, the house that hernias built, is a converted country estate which gives the hospital ‘a country club’ appeal.† A quote from American Medical News Shouldice Hospital in Canada is widely known for one thing-hernia repair! In fact, that is the only operation it performs, and it performs a great many of them. Over the past two decades this small 90-bed hospital has averaged 7,000 operations annually. Last year, it had a record year and performedRead MoreShouldice Hospital Case Solution1744 Words   |  7 Pagesas compared to that of a typical hospital? A. The hospital focused on this new procedure for treatment of external types of abdominal hernias. 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Over the past two decades this small 90-bed hospital has averaged 7,000 operations annually. Last year, they had a record year and performed nearly 7,500 operationsRead MoreShouldice Case1227 Words   |  5 Pages1 Model Shouldice Hospital as a processing operation with products, attributes and resources. 2 What are its competitive priorities? 3 What kind of market has it chosen to focus on? Shouldice Hospital follows the business model of focus on a single standardized service for a narrow target of consumers, rather than to provide customized solution (as in a general clinic or hospital). It focuses on providing quick, convenient, and reliable cure for external types of abdominal hernias. The HospitalRead MoreShouldice Hospital1560 Words   |  7 PagesOPERATIONS MANAGEMENT CASE 1 Ââ€" 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 ShouldiceRead MoreThe Shouldice Method3365 Words   |  14 PagesThe 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 livesRead MoreShouldice Hospital Limited3555 Words   |  15 Pages1. 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