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HISTORY
Shouldice Hospital was established in 1945 by Dr. Edward Earle Shouldice (18901965). Dr. Shouldice developed his innovative technique during World War II, to help young men who were unable to enlist in the military because of their hernias. His unique repair method improved surgical results and reduced recovery time, quickly restoring the young recruits to physical fitness for military training.
What is Hernia
A Hernia may develop when there is a weak spot or opening in the wall of muscle and connective tissue that supports youre abdomen. Once you have a weakness in your abdominal wall, anything that increases the pressure in your abdomen may cause hernia to develop. When the tissues or organs inside your abdomen bulge through a weakness in your abdominal wall, it is called a hernia.
Patients do not feel that that are staying in hospital Patients are taking a vacation This is a club Focused
Important features:
A unique program of care and recovery A welcoming, supportive atmosphere A relaxing, resort-like setting A lifetime of care and support
Continuation
Shouldice is offering: high quality service at low price Shouldice is having Highly satisfied customers Happy Employees Shouldice is also making high profit
Maximizing the difference between perceived quality and value to the patient on one hand and the cost of supplying services on the other.
A Focus Strategy
Market Focus focus on a narrow segment of potential patients who have hernia and they are predominantly male, older in age, essentially in good health large market potential: 600,000 operations in U.S. in 1979 Internal Focus Doctors: Dedicated to quality of shoudice method, tolerance for boredom, family oriented Nurses: people oriented, assist patients Staff: flexible, team oriented
Operating Concept
Shouldice achieves outstanding results as a low price and at a high profit because:
Everything done by the hospital is designed to maximize the difference between perceived quality and the value of the service provided patients on one hand and the cost of providing the service on the other.
Sharing of expensive services such as anesthetist Short and relatively regular hours for surgeon Opportunities for surgeons to observe and and advise one another Peer group pressure that leads to higher level of self-control of quality A conscious effort is made to make Shouldice a familyexperience
The elements in the service system to support the service Concept (managerial elements)
Service encounter
Doctors and nurses are carefully recruited Employees trained to help / counsel patients Communal dinning for doctors, nurses , staff and patients
Quality
adherence to Shouldice method opportunity for surgeon to observe & advise one another
(managerial elements)
Delivery system Maximum degree of customer participation Efficient and low cost Avoid a typical hospital atmosphere Facility design Acres of gardens to encourage exercise & rapid recovery minimize hospital feeling (carpeting and odorless disinfectant etc) Stairways are designed for patients to use right after operations No TVs and Telephones in rooms to encourage walking Operating rooms are located in semicircle to encourage doctors to help each other and use the
The elements in the service system to support the service Concept (structural elements)
The elements in the service system to support the service Concept (structural elements) Location large city near air port -> access to worldwide market large local population to fill up cancelled bookings Capacity planning Elective procedures -> scheduled operations Balancing Capacity and improving capacity utilization Needs to increase capacity
Incoming Patients
Bottleneck
Day 2
42 Exams
33 Surgeries
4 Sent Home
89 Beds Available
Bottlenec k
Discharged
Day 2-5
Day 4-5
PROCESS FLOW
Capabilities
Examination Rooms: (6 rooms x 3 hrs (1-4 PM) x 5 days x 60 min/hr) / (20 min / exam) = 270 patients /week Admitting Procedure: (2 people x 4 hrs (1-5 PM) x 5 days/week x 60 min/hr) / (10min/patient) = 240 patients/week Nursing Station: (2 stations x 4 hrs (1-5 PM) x 5 days/week x 60min/hr)/(10 min/patient)=240 patients /week
Distinctive Technique
Experienced Staff
Shouldice Advantage
Explicit Services
Quality hernia surgery using the Shouldice method, low recurrence Very experienced doctors
SWOT ANALYSIS
Strengths: 1.Unique surgical techniques. 2.Up-to-date equipment. 3.Educated and experienced stuff. 4.Excellent service and nursery. 5.Huge demand for operations
Weaknesses: 1) Limited number of beds. 2)No usage of mobile and tv. Threat: 1.Competition
Opportunities: 1)Related diversification of surgery operation services. 2)Open days can be Saturday or even Sunday. 3)Introducing of new location (inside Canada and in another countries). 4)Increasing of a number of patients.
Alternative Strategies
1)To stay at a present level and continue to do as they are currently doing. 2)To add additional day by operating on Sundays. 3)To increase number of beds. 4)To meet unmet market demand with external capacity.
Evaluation of alternatives
1)Their reputation and existing system set them as market leader, so they can do nothing to improve this fact. 2)Adding Saturday as operating day is also reasonable, because they easily can increase number of patients (but this can slightly decrease the quality of service-so they need to hire additional staff). 3)Increasing number of beds is not a good idea, because in this case they also will need to add more doctors and surgery rooms. 4)They can look on another facilities, there their doctors can implement theirs skills.
Saturday Surgeries Low: Small increase in doctors salaries Low: Only impacts doctors schedules
Franchising Moderate
Complexity
Moderate
High: Moderate: Low: Directly addresses the Capacity +20% but does Does not address capacity bottleneck & increases beds not address the bottleneck issues at current facility by 50% Allows more patients to be Chair of the Board & Chief Difficult to control quality serviced @ Shouldice Surgeon opposed along of service Has minimal impact on w/40% of older doctors Brand equity potentially staff Could create wedge compromised between young & old in May take some business environment where from current facility experience is key
Primary staffs
Byrnes Shouldice, co-owner, president, chairman, former surgeon at the facility Germaine Urquhart, co-owner, vice president Daryl Urquhart, director of business development and grandson of the founder SHelley Shouldice, program coordinator, grandaughter of the founder Dr. Cassim T. Degani, MB, BS, MS, FRCSC, FACS, * Dr. Claude Joseph Burul, MD Dr. Ram K. Singal, MB, BS, FRCSC Dr. Earle Byrnes Shouldice, MD Dr. Michael A. Alexander, MB, BS, FRCSC, FACS Chief Surgeon, Shouldice Hospital Dr. Chin K. Chan, BS(Hon), MD, CM, CSPQ, DABS, FRCSC Dr. Richard T. Sang, MD Dr. Keith Slater, MD Dr. Rasheed. A. Affifi, MB, ChB, FRCSC Dr. N. Ross, MD Dr. Dr. Ash Maharaj, MD Dr. Dr. Robert Palmer , MD, FRCSC Dr. Alberto De La Rocha, MD, FRCSC Dr. Peter Kalman, MD, FRCSC, FACS Dr. Claude Burul, MD, FRCSC, Assistant Chief Surgeon, Shouldice Hospital
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