Use the case:
Shouldice Hospital Limited
9-683-068
by James Heskett for Harvard Business School
Problem 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.
Problem 2. How do you account for its successful performance?
Problem 3. Prepare a patient process flow diagram from arrival through surgery and determine the capacities at each stage. For this diagram, only indicate major points in the process, e.g., admitting, examination, operating room surgeries, etc. Use the actual hours of operation for each step in the process to determine the capacity of each step. Where is the bottleneck?
Problem 4. Do a detailed analysis of potential on-site capacity expansion alternatives (on a per week basis). Assume an average of 3.5 days stay at the hospital for each patient, including surgery, and Sunday admits. This means that half the patients spend three days while the other half spend four days.
It may help to use an exhibit similar to the following to do this analysis.
Item Sun Mon Tue Wed Thu Fri Sat Sun Mon
Admits
Operations
Departures
No. of beds in use
Total no. of beds available