Shouldice Hospital – A Cut Above 1.) How well is the hospital currently utilizing its beds?
The hospital stay cycles have been provided: | Mon Beds | Tue Beds | Wed Beds | Thu Beds | Fri Beds | Sat Beds | Sun Beds | Available Beds | 90 | 90 | 90 | 90 | 90 | 90 | 90 | Monday Admission | 30 | 30 | 30 | | | | | Tuesday Admission | | 30 | 30 | 30 | | | | Wednesday Admission | | | 30 | 30 | 30 | | | Thursday Admission | | | | 30 | 30 | 30 | | Friday Admission | | | | | | | | Saturday Admission | | | | | | | | Sunday Admission | 30 | 30 | | | | | 30 | TOTAL USED | 60 | 90 | 90 | 90 | 60 | 30 | 30 | Capacity Utilization | 66.67% | 100.00% | 100.00% | 100.00% | 66.67% | 33.33% | 33.33% …show more content…
This translates to a utilization rate of only 88.89% (40/45) for the beds.
As for the hospital’s available surgeons, the maximum number operations that the current set of twelve surgeons can perform daily will be: Available surgeons x [(operation per day)/surgeon]:
= 12 surgeons x (4 operations per day)/surgeon
= 48 operations/day
Since each surgeon only performs four operations per day, the hospital can perform a maximum of 48 operations daily based on their available surgeons. The current capacity of 30 operations per day, as well as the proposed 45 per day, will be both within capacity.
Realistically, the hospital can only expect to perform 40 operations per day, based on the operating table constraint. The beds will be underutilized by 11.11%, and the surgeons by 16.67%.

4.) Although financial data are sketchy, an estimate from a construction company indicates that adding bed capacity would cost about $100,000 per bed. In addition, the rate charged for the hernia surgery varies between about $900 and $2,000, with an average rate of S 1,300 per operation. The surgeons are paid a flat $600 per operation. Due to all the uncertainties in government health care legislation, Shouldice would like to justify any