Case presentation on Shouldice Hospital

PRESENTATION NAME
Company Name

Introduction
Dr. Earle Shouldice

Founder: Dr. Edward Earle Shouldice graduated from the University of Toronto in 1916. Corporate Name: Shouldice Hospital Limited Established: 1945 Location: The hospital was located in Toronto in the southern part of Canada. Specialty: Abdominal Wall Hernia Repairs

The facility
Two facilities in one building
Hospital clinic

Level 3

Additional patient rooms & recreational areas

Level 2
Level 1

Lounge area, admission office, patient rooms

Kitchen & Dinning rooms

Shouldice Service Model 4 Day Lead Time

If not OK Day 1 30/36 Arrivals 13 pm Day 2 Local anaesthesia (-20mins) Day 3 Loosen stitches Walk, play, & eat with your buddies Dinner at 6 pm Tea & cookies at 9 pm Surgery (40 mins) Rest in room (2-3hrs) Start eating & moving Dinner at 6 pm Tea & cookies at 9 pm Check by MD (15 mins) If OK: Check-in & admin Blood test Explain process steps Dinner at 6 pm Tea & cookies at 9 pm

Day 4: Remove stitches, walk, play, eat, check out

Relies entirely on word-of-mouth advertising. Rates are reasonable ~ $2230 compared to $5240 elsewhere Annual checkups are provided for alumni free of charge. Annual reunion of patients draws about 1000.

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 shouldice method, tolerance for boredom, family oriented Nurses: people oriented, assist patients Staff: flexible, team oriented

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. Shouldices strategic service concept

MARKETING STRETEGY
The three important aspects of services marketing triangle are the employees, customers and the company itself. Shouldice keeps its staff happy through profit sharing policy, wherein the employees are paid a part of the profit in addition to their fixed salaries. This sharing is done based on their contribution towards the success of the firm. This entices them to work hard and put in more efforts. From the management point of view, they have given their staff a lesser working load and weekends off. This enables people to spend time with their family and this in term keeps them contented and in the long run reduces the attrition rate This is internal marketing for the company.

What makes Shouldice different from other Hospitals?

Peace of Mind/ low risk/ low recurrence Friendly, social, homely and relaxing environment More of a vacation rather than treatment Parents gets free accommodation at Shouldice so that the cost of nursing is saved and can take better care of their offspring. Careful recruitment of employees

Doctors and nurses are highly trained to help and counsel patients No one is fired! Turnover is low Staff is non-union Foods are all fresh ingredients and prepared from scratch.

PROBLEM ANALYSIS
Fear about expansion: Management was afraid to send out new broachers due to huge demand about shouldice treatment Due to this they will not be able to give their 100 %value to core competency . Management believed that they should improve their services rather than expansion not to diversify from its core competency (Hernia)

PROBLEM ANALYSIS
Scheduling Saturday as an Operating Day:
Require to schedule 23-25 operations on Saturday Six surgeons and a supervising surgeon have to work on Saturdays Additional other personnel Violates the implied contract that Shouldice has with its surgeons, strong opposition by the senior doctors Operating close the the theoretical capacity of the facility 20 % capacity will increase which cant be processed as well as serviced effectively

PROBLEM ANALYSIS
Misuse of Shouldice Name : Others can copy the name of shouldice The technique could be misapplied by others that could be misinformed the patients The whole system could be blamed by patients

RECOMMENDATION ??

What do we Recommend for SHOULDICE HOSPITAL LTD.?

RECOMMENDATION

Add another floor to the existing hospital facility Operating on Saturday Not to Expand in US Patent the Shouldice method Proper succession planning of doctors Better not to diversify from its core competency (Hernia) Higher more nurses