Shouldice Limburg

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Annual Management Report Fiscal Year 2012 Maastricht University School of Business and Economics Maastricht, November 7, 2012 Altrock, Felix Overkamp, Sasha Course code: EBC 4107 Course Tutor: M. Peeters I6011104 I6001945 Study: Master IB Finance Executive Summary Rapidly evolving health care industry transforms the way in which hospitals have to plan their financials, operations and their facility management. The way in which costs are determined, and influenced by exogenous factors, the treatment of patients, and the possibility to manage hospitals facilities have undergone significant changes. New structures and regulations in the health care industry have altered the way in which hospitals have to plan their…show more content…
In order to implement that constraint Shouldice have to alter the number of diagnosed patients. Shouldice has to reduce the number of diagnosed patients they handle per day if the number of beds occupied would exceed the plus of 15 beds. Shouldice cannot alter the number of the 3 unknown groups of patients, as it is not clear how long they will have to stay in the recovery department as long as they have not been operated. With that limitation we still find a minimum average daily cost at 210 beds. In a next step we take health insurance companies as a possible subsidizer into consideration. Contacting several insurance companies it becomes clear that the interest exist to pay Shouldice € 4,600 for the product “hip surgery”, and in addition the companies promise to procure 60 per day on average. Given that information and implemented into our simulation model we are able to come up with a profit optimization. The cooperation becomes profitable if Shouldice makes use of 220, 210, or 200 beds in place. We find that the profit of the recovery department is maximized with 210 beds in place equaling € 5,609.31 average daily profits. 5 Figure 2: Average Daily Profits Under Base Case Scenario Receiving €4,600 per Hip Surgery $8,000.00 $6,000.00 Average Daily Pro8its $4,000.00 $2,000.00 $-­‐ $(2,000.00) $(4,000.00) $(6,000.00)

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