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# Justify Expansion over 5 Years

CASE ANALYSIS: SHOULDICE HOSPITAL LIMITED Shouldice Hospital Case Question #1: How well is the hospital currently utilizing its bed? 90 beds x 7 days/ week = 630 beds available in a week 30 patients x 3 days x 5 days per week = 450 beds utilized 450 beds utilized / 630 availble beds = 71. 43% The hospital is currently utilizing 71. 43% of their beds, this is actually an ideal operating point. To increase its rate of utilization might decrease the service quality. Question #2. Develop a similar table to show the effects of adding operations on Saturday. (Assume that 30 operations would still be performed each day).

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How would this affect the utilization of the bed capacity? Is this capacity sufficient for the additional patients? Check-in day| Mon| Tue| Wed| Thu| Fri| Sat| Sun| Mon| 30| 30| 30| | | | | Tue| | 30| 30| 30| | | | Wed| | | 30| 30| 30| | | Thu| | | | 30| 30| 30| | Fri| | | | | | | | Sat| 30| | | | | 30| 30| Sun| 30| 30| | | | | 30| Total| 90| 90| 90| 90| 60| 60| 60| The total beds used if the hospital adds operations on Saturday: 540 beds The utilization rate = 540/650 = 85. 71% So with the addition of one more day operation will increase the utilization of bed capacity.

With this rate of capacity utilization, it will be risky for the hospital in coping with the immediate changes in demand. With this adding one day operation, but without increasing facilities and labor, the capacity is less likely sufficient for additional patients. Question #3: Now look at the effect of increasing the number of beds by 50%. How many operations could the hospital perform per day before running out of bed capacity? (Assume operations are performed 05 days per week, with the same number performed on each day). How well would the new resources be utilized relative to the current operations?

Could the hospital really perform this many operations? Why? * In case of increasing the number of bed by 50%, the total bed available will be: 90*1. 5 = 135 beds. This means the hospital could perform maximum 45 operations per day before running out of bed capacity. * With this new resource, the total bed capacity will be: 135*5 = 675 beds Relating to the current operation of 30 patients per day, the bed capacity utilization rate will be: 450/765 = 66. 67%. *It will be hard for the hospital to perform 45 operations per day due to the limitation in their surgeon force and operating facilities.

Firstly, they have only 12 full-time surgeons. Each surgeon can operate on 4 patients per day. At maximum, 12 surgeons can perform total 48 operations. Secondly, there are only 5 operating rooms. Each operation needs 1 hour, so each hour can maximum perform 5 operations. The operation time is from 7:30am till 4:00pm, there will be about 8hours, then the maximum number of operations per day is 5*8 = 40 operations. Combine these factors, we conclude that the hospital can operate 40 patients per day at maximum. Therefore, the hospital couldn’t perform 45 operations per day.

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