Different plans are proposed to increase Shouldice Hospital Ltd.'s capacity, but due consideration must be given to its culture. Other issues that need to be taken into account include capacity and organizational analysis, as well as creating a well-managed medical service facility for efficient operations in the future.
James L. Heskett
Harvard Business Review (683068-PDF-ENG)
April 25, 1983
Case questions answered:
- How does Shouldice Hospital Ltd. compete? Identify at least three characteristics of Shouldice’s operations that contribute to its competitiveness.
- Compute the cycle time (time per patient) and weekly capacity (patients/week) for the Examination Room, Nurse’s Station, Operating Rooms, and Doctors.
- What was the average throughput rate (patients/week) of Shouldice Hospital?
- What is the maximum possible throughput rate of Shouldice Hospital?
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Shouldice Hospital Ltd. Case Answers
Shouldice Hospital Ltd. is one of the world’s most reputed healthcare facilities located in Ontario, Canada.
The hospital was founded by Dr. Edward Earle Shouldice in the 1940s and specialized in the treatment of external abdominal hernias. It became world-renowned due to its unique way of treating patients.
Shouldice Hospital Ltd.’s Success
The following are the competitive advantages that Shouldice Hospital has over its competitors, which are also the foundation of its success:
The organization uses a unique surgical technique, founded by Dr. Edward Earle Shouldice, for the repair of hernia, due to which early ambulation and rapid recovery of the patient is possible. Another crucial feature of the technique was there was only a 1% recurrence rate on more than 300,000 hernia operations.
All the surgeons of the hospital are well experienced and are trained in the Shouldice Hospital Ltd. technique for hernia repair before they can start practicing.
Furthermore, the price for treatment is very reasonable, i.e., a patient who receives treatment at the hospital pays nearly half of the price he has to any other hospital. The above factors make this technique superior to any other technique offered by any other organization.
Patients who received treatment at Shouldice Hospital are extremely impressed by the experience they have had in the said hospital. Most of them feel like they are on vacation in a country club rather than a hospital.
They have been provided positive counseling sessions by the nurses. As the rooms are semiprivate, they are grouped with other patients who have similar interests or backgrounds as them. They felt warm, relaxed, and welcomed at Shouldice Hospital Ltd.
Even after treatment, the hospital offers free annual checkups to its recovered patients and even organizes lavish annual meets for them, which is the cherry on the cake for the patients.
This customer satisfaction not only…
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