Essay Shouldice Hospital

1655 Words Feb 2nd, 2014 7 Pages
Shouldice Hospital Case Analysis

Question 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

Compared to other medical institutions that provide a wide array of medical procedures, Shouldice Hospital specializes in one procedure for patients that suffer from abdominal hernias. This specialization allows each doctor at Shouldice Hospital to perform approximately 600 hernia surgeries per year, while doctors at other institutions only perform 25-50 hernia surgeries per year. As a result, the “Shouldice Method” has been perfected to an unparalleled level for the well-being of the patient. The
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Furthermore, the operation method is world-class because it provides a more reinforced muscle wall in the abdomen and also the avoidance of general anesthetic unless absolutely required. This allows the patients to recover sooner and to experience less discomfort or nausea that is often associated with the aftermath of general anesthetic, which thus lets the patients to be active sooner as well; also, the limited use of general anesthetic reduces the need to staff more anesthetists, who are expensive at a rate of $300/day, and also reduces the cost of operation for the patients.
When patients are more self-sufficient in the recovery process, less oversight from the staff is required and the staff is freed up from mundane tasks such as changing sheets or changing bedpans but could focus more time on counseling the patients to help them recover. This also leads to lower cost in laundry, housekeeping, and nursing. When costs are kept low and well maintained, salaries offered to staff are able to be more competitive than comparable jobs in the area. When employees are properly compensated, they could focus on the tasks at hand and not have to worry about financial issues or leaving the hospital to look for higher-paying positions.
Furthermore, another factor to the hospital’s success is the doctors they hire. The doctors are highly productive and are able to perform 600 or more operations a

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