Analytical/Quantitative Assessment Exercise
Read and analyze the capacity data provided with the Shouldice Hospital case. In the case, hospital management is faced with two options: (1) add one more operating day to the hospital’s schedule, or (2) add a second floor to the hospital, increasing bed capacity by 50%. Using the information provided with the case on pages 87-88 of the textbook as well as the completed spreadsheet data provided with this packet, write a two-three page business case/essay to support your recommendation. Include in your essay a summary of the strengths, weaknesses, opportunities and threats of Shouldice Hospital’s business operations. Be sure to reference specific data from the case and attachments to support your conclusions.
The assignment is due on November 3rd, at the start of class. Please contact me if you have any questions.InitialCapacityAnalysis
Shouldice Hospital (Initial capacity analysis)
90 = Total Beds
30 = Daily Admissions
Beds Required
Mon Tues Wed Thurs Fri Sat Sun
Check-in day Monday 30 30 30
Tuesday 30 30 30
Wednesday 30 30 30
Thursday 30 30 30
Friday
Saturday
Sunday 30 30 30
Total by Day 60 90 90 90 60 30 30
Utilization by Day 66.7% 100.0% 100.0% 100.0% 66.7% 33.3% 33.3%
150 = Total Operations per Week
630 = Available Bed-Days
450 = Used Bed-Days
71.4% = Bed Utilization
12.5 = Operations per Surgeon
30 = Operations per Operating Room
SaturdayOperations
Shouldice Hospital (Saturday Operations)
90 = Total Beds
30 = Daily Admissions
Beds Required
Mon Tues Wed Thurs Fri Sat Sun
Check-in day Monday 30 30 30
Tuesday 30 30 30
Wednesday 30 30 30
Thursday 30 30 30
Friday 30 30 30
Saturday
Sunday 30 30 30
Total by Day 60 90 90 90 90 60 60
Utilization by Day 66.7% 100.0% 100.0% 100.0% 100.0% 66.7% 66.7%
180 = Total Operations per Week
630 = Available Bed-Days
540 = Used Bed-Days
85.7% = Bed Utilization
15 = Operations per Surgeon
36 = Operations per Operating Room
ExpandCapacity
Shouldice Hospital (Expanded capacity analysis)
135 = Total Beds
30 = Daily Admissions
Beds Required
Mon Tues Wed Thurs Fri Sat Sun
Check-in day Monday 45 45 45
Tuesday 45 45 45
Wednesday 45 45 45
Thursday 45 45 45
Friday
Saturday
Sunday 45 45 45
Total by Day 90 135 135 135 90 45 45
Utilization by Day 66.7% 100.0% 100.0% 100.0% 66.7% 33.3% 33.3%
225 = Total Operations per Week
945 = Available Bed-Days
675 = Used Bed-Days
71.4% = Bed Utilization
18.75 = Operations per Surgeon
45 = Operations per Operating Room
FinancialAnalysis
Shouldice Hospital (Financial analysis)
Expansion Costs
45 = Additional beds
$100,000 = Cost per additional bed
$4,500,000 = Total expansion cost
Revenue/Cost per Surgery
$1,300 = Revenue per operation
$600 = Surgeon cost per operation
$700 = Additional revenue per operation
75 = Additional operations
Financial Analysis
$52,500 = Incremental revenue
85.7 = Payback in weeks
