Shouldice Hospital Limited

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Shouldice Hospital Limited

Shouldice is a private hospital founded by Dr. Earle Shouldice in Toronto in July 1945. The hospital started out as a six-room nursing home in downtown Toronto. As demand increased for hernia operations, he expanded the facilities to a capacity of 36-beds, which turned into a 89-bed facility after adding a large wing. Dr. Shouldice devised a method called the Shouldice method to increase the efficiency and the overall experience of the surgery and the post surgery recovery period. The hospital specializes on external hernia cases and will not treat internal hernia patients. The method proved to be a big success. In this case, we will analyze the process flow of the hospital,
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Shouldice can rearrange its resources to keep the hospital running weeklong. This would alleviate the burden on the bottleneck so that buildup is minimized and more patients are put through the process.
One of the major limits to expansion is the number of beds available for patients. Therefore, a possible area of capacity expansion is creating an additional facility where more beds can be put for patients. But to accommodate the increased amount of demand a bigger kitchen and a dining room would be necessary. Moreover, an additional staff should be hired as long as the amount does not exceed the current staff per patient ratio in order to keep the operational costs from increasing too much.
Another limiting factor is the number of doctors. Thus, the more doctors there are, the more patient acceptance will be. However there would be a limit on the amount of additional surgeons hired since each surgeon should at least perform three surgeries a day.
Additionally, having a new facility outside of Canada dealing on a different specialty is a good option for capacity in which case a careful analysis should be done to make sure that the successfulness of the additional facility is not lower then the original one.

Exhibit 1:
The process flow chart is attached.

Exhibit 2:
Examination  17.5 minutes per patient X 6
 20.57 Patients per Hour
Insurance  10 minutes per patient X 2
 12 Patients per Hour
Blood/Urine  7.5 minutes

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