Shouldice Hospital

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© 2007-2008 Richard E Murphy

Even Swaps - Shouldice Hospital

18 November 2007

1. How Successful is Shouldice Hospital?
Shouldice Hospital is a highly successful business that maintains a focused service delivery system due to the success rate of its surgeries, its low employee turnover, its ability to maintain high quality standards, its ability to keep costs low and to remain profitable, and most especially the positive evaluations of its patients.

Its strengths can be attributed to stringent policies of staff

training in the Shouldice surgical method; the preservation of a communal atmosphere amongst both the staff and with the patients; the implementation of efficient and cost-effective facility operations; and
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(b) See “The Market” section of the case.
(c) See “The Market” section of the case.
(d) Assuming the operations were performed near the patient’s home.
(e) The shortest stay mentioned in “The Patient’s Experience” section.
(f) Assuming the patient is engaged in a job involving “light” work, as described in
“The Patient’s Experience” section of the case.
(1) All monetary calculations based on Canadian dollars @ 1983 exchange rate
$.8CA = $1.US
c. Target Market
The target market for Shouldice Hospital is primarily healthy persons who require low risk inguinal hernia operations.

The advantage of admitting only

healthy persons is that the percentage of successful procedures is high, while the duration in the hospital is low, which is important given that the hospital is a nonprofit organization and only the clinic generates profits. So, by cutting down on the stay of the patient, customer turnover is higher and costs are substantially reduced. Further, since most patients are ambulatory, linens need not be changed


© 2007-2008 Richard E Murphy

Even Swaps - Shouldice Hospital

18 November 2007

daily and bed pans are not required, so nurses can better utilize their time conducting orientation programs counseling patients.
d. Staff Considerations
The hospital focuses not only on the

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