CASE ANALYSIS: SHOULDICE HOSPITAL LIMITED Executive Summary: The Shouldice Hospital, Ontario, Canada is a pioneer in the field of treating patients suffering from external abdominal hernia. The speedy ambulation coupled with its reasonable price rates leads to satisfied patients publicizing the hospital by word of mouth. The issues that confront the hospital management are: ·Deciding on ways to meet the backlog of operations, by expanding the hospital's capacity, while still maintaining control over the overall …showed first 75 words of 1904 total…

…showed last 75 words of 1904 total…For hospital= $ 2.8 million For clinic = $ 2 million Total budget for operating costs= $ 4.8 million Total number of operations performed in 1982 = 6850 Hence Average Cost per patient borne by the hospital = $ 4.8 million / 6850 = $ 701 Exhibit 3 : Net profit increase using proposed solution Net profit per patient = 1029 - 701 = $328 By working on Saturdays we are increasing the working days by 52. No of operations per year = 6850 No of working days per year = 261 Hence, number of operations per day= 6850/261 = 27 Hence net profit increase per year = 328 * 27 * 52 = $ 0.46 million