Shouldice Hospital Management (abridged) Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Shouldice Hospital Management (abridged) Case Solution

Introduction

Shouldice Hospital Limited is a healthcare center directed toward hernia operations. It was established in the early 1940s by Dr. Earle Shouldiceengraved a friendly attitude towards the patients such that patients would recommend this hospital more than doctors do. Doctors would consider the surgical method adopted by Shouldice a relatively simple one and would not go for it more often. Although Shouldice was directed towards simple procedures that would cause minimum surgical complexity and ease the procedure. Only external hernias were treated at the hospital. First-time operations took around 45 minutes only the complicated ones took 90 around 90 minutes. (Heskett, 2004)

Success Rate of Shouldice Hospital

Shouldice Hospital has embarked upon a long journey of success throughout the years and the doctors and staff need to be accredited for that. It has expanded its business over years and still thinking ahead of expansion. The number of beds and staff has increased over the years as the hospital covers its success journey. The operational procedures are heading on to be shifted to Saturdays also or the expansion of the infrastructure by 50% to accommodate more patients and fulfill their needs. The operation success rate is also high (0.8%) as compared to casual ratings of the healthcare industry (10%).

Performance of Shouldice Hospital

The administration is extremely dedicated and the system is well-organized. The doctors and nurses are directed towards providing quality services and by providing personal attention and efforts to cure patients. There are no hidden costs and everything is made clear at the start that the service costs are nil compared to other healthcare institutes. The patients are only charged for the actual services. Canadian acute care average ratio marks the requirement of nurses to patients was 1:4 while for the Shouldice Hospital, it was 1:15 which was a remarkable achievement for the hospital and proved its success.

Problem statement

The actual problem that the firm is facing is regarding expansion. Whether they should expand or not and if expansion was a key then which area best supports the expansion of the hospital according to its services and culture. The best available medical and general staff that can preserve the quality services given at Shouldice Hospital and continue to enlighten its name further. The best option that could be considered came up to be Toronto and United States. The firm is confused about whether to heed Toronto or the United States. (Heskett, 2004)

Analysis

Qualitative Analysis

The cases of hernia are reportedly larger in the US than in Toronto. It is seen to be more common in males than in females and also found more in adults. The risk factors include smoking, being overweight, genetics, and other health-related issues significantly found in the US more than in any other state. The hospital provided free check-ups to alumni and thus attract more and more customers. Bot Toronto and the US need deep considerations for expansion purposes. The chances of expansion are significant in both countries due to the excellent healthcare services offered by the Shouldice Hospital management.

Quantitative Analysis

The US market is bigger with respect to the number of patients with nearly 1 000 000 patients treated in the year 2000 while in Toronto, around 50 000 patients got treated for hernia issues. The health-related issues in the US seem to be bigger as seenin the statistics. The hospital charges are quite reasonable and have the chances of expansion in both US as well as Toronto. A four-day hospital stay would make up the charge of around $320 per day for a typical operation. The surgery fee for primary inguinal would cost around $650. Anesthesia feesareheld at around $300 and all these combined would be less than a normal surgery fee of $5240 in other healthcare centers. The number of operations is accounted to be 2400 currently and is increasing at the rate of 100 every six months. The major consideration for the hospital waswhether or not to expand the business as the business was growing ata rapid rate. The cost for an increase of 50% beds would be around $4 million. Further, they are thinking to expand the business in either US or Toronto. An investment of around $200-600 for round trip fares from variousNorth American areas to Toronto. (Aiolfi, 2021)

Results of Analysis

The analysis, both qualitative and quantitative clearly depicts that the services of the hospital are significantly high and the rates quite reasonable. Further, the US market has more chances of expansion than Toronto as seen in the statistics of the number of patients enrolled and the cost........................

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Shouldice Hospital Management (abridged) Harvard Case Solution & Analysis