OPERATIONS MANAGEMENT
CASE 1 Shouldice Hospital
Introduction Shouldice Hospital, set up in 1945 by Dr. Earl Shouldice, is located near Toronto. It follows the business model of focus on a single standardised service for a narrow target of consumers, rather than to provide customised solution (as in a general clinic or hospital). It focuses on providing quick, convenient, and reliable cure for external types of abdominal hernias. The Hospital uses its own technique, called the Shouldice Method. It is famous for a relatively short post-operative recovery period.
Description
1. Shouldice Hospital provides low-cost medical service in its area of specialization. Use of the Shouldice Method allows patients to recuperate fast
…show more content…
Free Service to clergy and family members
13. Out-of-town patients were diagnosed online using the medical information questionnaire, saving $200-$400
14. Recovery time for patients is 1-4 weeks, as compared to 2-8 weeks in other hospitals
Process Flow Diagram
Process Analysis using Cost and Capacity
A: Cost Analysis
Budget for the Hospital: $ 2.8 million
Budget for the clinic: $2 million
Therefore, Total Budget = Budget for the Hospital+ Budget for the clinic = $2.8 million + $2 million = $ 4.8 million
Number of operations per year = 6850 (considering the same as for the year, 1982)
Therefore average cost per operation = $4.8 million/6850 = $701
Total charge to the patient = Hospital stay + Surgical fee + Assistant surgeon fee + Anesthetic fee = 111*4 + 450 + 60 +75 = $1029
Net profit per patient = $(1029-701) = $328
B: Capacity Analysis
The critical resources in this case are:
Number of operation theatres
Number of hospital beds
Number of staff (including surgeons, assistant surgeons and nurses)
These resources are tabulated as under:
Resource name Availability Max. capacity per week
Operation Theatre 5 185
Number of beds 117 152
Number of surgeons 12 357
For details of calculation of the maximum capacity, please refer to points 1, 2 and 3 below.
1. Average number of operations per day = 27(See Appendix A above)
Number of critical operations performed = 18% of total
In working in the Home Health Industry for Kaiser Permanente we are on the front line of controlling Re-hospitalizations. Re-hospitalizations can be costly to providers due to the Medicare regulations put forth along with the cost of hospitalization. This has become a Quality Improvement project that has grown to involve more departments to improve hospitalization rates. It’s crucial to have all departments involved because this action item is affected by multiple departments.
In a specific study, following surgery, patients spent time in a rehabilitation center and had frequent, regular check-ups with the health care team. Thankfully, 90% of patients that survived the surgery had significant improvements. Limited functioning was only prevalent in 10% of the post-surgery group. In total, there were 80 people in the study, and ten of them died. Few passed away before and during surgery, while 7 of them died within one month after surgery (Rostagno et al., 2011). Factors that were related to death were: old age, lack of function in the left ventricle, and intense body wide infection. Overall, it has been concluded that the survival rate after surgery is rather high (70-85%) with a low chance of recurrence (Rostagno et al.,
Shouldice Hospital in Canada is widely known for one thing – hernia repair! In fact, that is the only operation it performs, and it performs a great many of them. Over the past two decades this small 90-bed hospital has averaged 7,000 operations annually. Last year, they had a record year and performed nearly 7,500 operations. Patients’ ties to Shouldice do not end when they leave the hospital. Every year the gala Hernia Reunion dinner (with complimentary hernia inspection) draws in excess of 1,000 former patients. Some of who have been attending the event for
(Horwitz et al.,2011). It is important to consider an all-condition 30-day readmission rate as a quality measure which is the standard benchmark used by the Centers for Medicare & Medicaid Services (CMS) (Horwitz et al., 2011). Rates at the 80th percentile or lower are considered optimal by CMS. Patients transferred to another hospital for longer term care will not count as a readmission. A hospital's readmission rate is calculated by dividing the total number of patients readmitted within seven days of discharge by the total number of hospital discharges” (Mayo Foundation for Medical Education and Research 1998-2014)
Hospitals vary in their quality performance with different procedures and medical conditions. The lower the hospital’s performance level, the higher the mortality rate and health care costs of the said hospital. It was also mentioned in the report that if the surgeons opted to use laparoscopic approaches to applicable abdominal surgeries, it would reduce the risk of complications, shorten the hospital stays, and subsequently lower the cost for both
The Shouldice Hospital Limited case consists of the story of an Ontario farm boy who grew up to significantly impact the lives of thousands of hernia patients. Dr. Earle Shouldice grew up to become a prominent lecturer at the University of Toronto, ran a private medical and surgical practice, and was a successful researcher (Heskett, 2003, p. 1). He performed an
(f) Assuming the patient is engaged in a job involving “light” work, as described in
The purpose of this assignment is to read and review the case study. Then discuss your assessment of Shouldice Hospital 's marketing challenges, as well as presenting your ideas for how the hospital can best manage those challenges. The assignment will contain the answer of the following questions:
Medical recovery: Patients generally stay in the hospital for ten to fourteen days, starting in intensive care for some days and then moving to a transplant recovery zone. Your medical crew will assure your new liver is working and watch meticulously for any signs of bleeding, septicity and rejection. You will begin taking immunosuppressants to keep your immune system from confronting
In this unhealthy hospital case there weren’t many strengths to be seen from reading the case because lot of negative sides of the hospital were mentioned. Renovating the building and fixing all the leakages that are occurring so it actually looks like aesthetic place so the patient’s can actually feel more comfortable with a better looking place for their treatment. By keeping in mind of the long
Outcomes is a difficult parameter to deal with. I would say my average patient is in their middle to late seventies. Since transitioning to Robotic assisted surgeries my incisions usually end up at about four centimeters in size for extrication of the specimen. This has markedly improved pain, we no longer require epidurals. Instead we use local anesthesia blocks. This decreases the LOS in the ICU. This is part of an Enhanced Recovery After Surgery (ERAS) protocol which promotes clear protein drinks until two hours prior to the start of anesthesia. With this we avoid nasogastric tubes, they are given gum to chew to help wake up their gastrointestinal system, we ambulate the patient on the same day as surgery. We start feeding the clear protein drinks on the first day after surgery, minimize the amount of narcotics, and advance them to walking and eating on a regimented schedule. Once the patient is eating a regular diet, ambulating and passing bowel movements and pass a Physical Therapy assessment, they are deemed stable for discharge. For the readmission issues, we seem to have issues with the cardiac service.
Healing hospital paradigm is centered on the removal of stress and other health risks for the patients and their families in the hospital environment. Healing hospital paradigm is important because treating a patient’s illness is not the only intrinsic component when they are admitted to the hospital. A good example for this is stress. Stress can be brought about due to many things when a patient is in the hospital, for example painful treatments, financial problems due to being admitted, loss of social life etc. Reducing these sort of stressors may ensure that the patient’s wellbeing is being maintained and the comprehensive care Minimization of these stressors ensures that the patient’s well-being is maintained while the comprehensive
In the Past, hospitals have been used as housing for the poor or the sick. Hospitals are also houses for the mentally ill, homeless and those with fatal diseases. This was a place for people to go because it was very little medical knowledge available. Hospitals are for individuals who may need emergency services. This type of facility run test for unknown causes and provide direct care for illnesses that require intensive care. Surgeries are also provided at hospitals. A hospital a place where an individual can try to figure out exactly what health problems they have (Torrens and Williams,2008 pg183).
After analyzing this information and reading through the case thoroughly, it would be quite difficult for Shouldice to perform 45 operations a day. They have limitations due to their operating rooms and the number of surgeons at their facility. According to the case, they have 12 full-time surgeons and only 5 operating rooms. Each surgeon operates on 4 patients per day so at most, the 12 surgeons can perform 48 total operations on a daily basis. Additionally, each operation takes 1 hour and since they only have 5 operating rooms, the maximum number of operations they can perform is 5 operations per hour. Operation time
Shouldice Hospital had an excellent well-developed, focused service delivery system. The business strategy was to not only provide its patients with a quick, quality and low cost surgery but also providing an unforgettable experience and comfortable environment in the facility.