SHOULDICE HOSPITAL

Shouldice Hospital

Table of Contents

EXECUTIVE SUMMARY2

INTRODUCTION2

Facts of the Hospital:2

The Unique Selling Point of the Hospital3

DISCUSSION OF THE MANAGEMENT & ORGANIZATIONAL STRUCTURE3

The Key Success Factor:4

The Strategies Followed:4

• Social enterprise:4

• Market Segment:5

• Organizational Structure:7

• Services Marketing:8

• Word-of-mouth:9

The Central Problem10

CONCLUSIONS & RECOMMENDATIONS11

REFERENCES13

Shouldice Hospital

Executive Summary

The hospital selected for the purpose of this study is Shouldice Hospital. Dr. Edward Earle Shouldice was the founder of this hospital. The objectives of this review were to:

• Describe and evaluate the planning and decision-making processes of the board and senior executive levels as they pertain to the capital redevelopment project, program enhancements and hospital finances, including references to policy setting and information flow and to the roles, structures and relationships among board, CEO, executive and planning teams.

• Assess the decisions that considered the impact of the capital redevelopment project and capital purchases on hospital operations and finances, both operating and working funds, short term and longer term.

• Evaluate the decisions on which program enhancements were based, specifically related to the capital redevelopment project and their potential impact on hospital operations and finances, both operating and working funds, short term and longer term.

• Assess the financial management processes of the hospital, including cash management, financial reporting and those related to the capital redevelopment project.

• Make any appropriate recommendations for action.

• Identify the lessons learned from the Shouldice experience that can be applied to other similar projects currently under way in Ontario.

Introduction

Facts of the Hospital:

Location: The hospital was located in Toronto in the southern part of Canada and 48% of the demand was from northern U.S.

Layout: The Shouldice Hospital has two basic facilities; hospital and the clinic in one building. The rooms are design such that the patients have an opportunity to visit each other and this helped to create a service culture with the help of the people who worked for the Shouldice hospital.

Capacity Planning: Shouldice was constructed with a capacity of 36 beds. After some years passed, they improved the capacity of the hospital to 89 beds.

Service Encounter: There is a sensible service culture in Shouldice. Training in Shouldice technique is important since the procedure could not be varied. The patients, who were experienced hernia operation in Shouldice, can return their normal daily lives much before the other patients that had experienced the similar operation at other hospitals. And the recurrence rate for all operations performed at Shouldice is about 0.

The Unique Selling Point of the Hospital

“There is No Substitute for Experience”. Shouldice Hospital has been dedicated to the repair of hernias for over 55 years. The trained team of Shouldice Hospital surgeons have repaired more than 300,000 hernias with a greater than 99% success rate.

Surgeons at Shouldice Hospital have a virtual 100% success rate performing primary inguinal indirect hernia repairs. Shouldice Hospital has offered its Medical Guarantee for more than 55 years.

Discussion of the Management & Organizational Structure

The patients at the Shouldice center take some of care of themselves. In Shouldice, all the patients were encouraged to walk up and ...