Shouldice Hospital Limited
Group Project: Summer 2012 Operations Management BUSI-411 D02
Ashley Edwards, Yvette Dennis, Andrew Evans, and Rachel Gillespie
Respectfully submitted to Dr. Raja Selladurai
The facility of Shouldice Hospital took many years to design and was designed to help aid in the recovery of the patients (Hesket, 2005). Everything was designed around helping the patient to be comfortable, yet encourage movement and socializing of the patients. The design encourages postoperative ambulation, which Shouldice believed aided in recovery (Bendavid, 2003). The building is also efficient in its housekeeping and cafeteria services to ...view middle of the document...
The design of the facility includes the room set up. The rooms were capable of holding two patients, but did not have any television sets or telephones. Doubling up helped the hospital increase capacity. The lack of television or telephones required patients to get out of bed to socialize, rather than giving patients an excuse to sit in their rooms all day. Leaving the TV off also helps reduce the electric bill.
The operating rooms were set up for less than $30,000 (Hesket, 2005). The hospital used mobile units to administer anesthetics which reduced the cost of the room. There was only one crash cart per floor in case a patient would suffer a heart attack or other life threatening issue.
The cafeteria serves food to all the employees and patients. All food is home cooking, rather than from a can. The cafeteria makes about 400 meals per day, costing only $1.10 per meal (Hesket, 2005). Keeping costs low help keep costs low for the patients and maximize profits. The housekeeping staff is extremely small since linens are changed only after the patient has been discharged. This helps reduce the cost of washing linens, reducing the use of water.
Overall, the design of the facility is to help a patient recover quicker than other hospitals. The hospital specialized in treating external hernias only. They were able to streamline the process by helping patients recover quicker than others (David & William, 1998). Getting patients in and out of the hospital quickly allows the hospital to perform more surgeries. The design helps reduce the operation costs (Rynor, 2012). Allowing parents to care for their children helps to reduce the cost and gives children comfort of mom and dad. The hospital uses less medication since the patient is not in as much pain and recovery is faster (Chin Keung & Chan, 2006). Even the medication given before and during surgery is cost effective. The patient is only at the hospital for four to five days. The design can also help the staff from getting sick (Rynor, 2012). The hospital was able to create a niche for itself and perform a service better and cheaper than its competition.
When assessing the administration at Shouldice Hospital, it is evident that there are areas that could be considered strengths while some other areas could be considered weaknesses. A brief overview of the administration shows that the hospital highly values their employees, uses a division of labor model (Stevenson, p. 23), a knowledge based pay system (Stevenson, p. 290), and a work breakdown structure (Stevenson, p.748).
The belief that Shouldice highly values their employees stems from several different attributes listed in the case study. Their employees, including nurses, receive higher wages than most other hospitals employees in addition to a profit sharing program. Shouldice is able to maintain these high wages without a union which creates a unique environment of helpfulness. The...