Wednesday, January 18, 2012


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Measuring Bed Occupancy

Inpatient bed occupancy is the most widely used measure of hospital capacity. Occupancy is measured by recording the number of bed days used as a function of the number of bed days available.

% Occupancy = Bed Days Used (N) x 100

Bed Days Available (N)

Help with essay on hospital

Where bed days used = sum of each inpatient;

Bed days available = number of bed x number of days on which available

Beds Required

Check-In Day Monday Tuesday Wednesday Thursday Friday Saturday Sunday

Monday 0 0 0

Tuesday 0 0 0

Wednesday 0 0 0

Thursday 0 0 0


Saturday 0 0 0

Sunday 0 0 0

Total 60 0 0 0 0 60 60

Adding Saturday still within capacity patient coming in on Friday, Saturday stay, and Sunday stay, checking out on Monday

Actual Output

Utilization = Design Capacity (0 bed X 7 days =60) (Total days without Saturday 450 days) 450 actual output/60 design capacity = 450/60 = 71% utilization today and 60/0 = 1 day at 67% utilization

Increasing beds by 50%

(5 days X 0 days = 150 days… They are just adding bed capacity not more surgeries

Utilization will decrease if they increase number of beds by 50%

Today 150 X $,400 = $60,000

$60,000 X 5 yrs = $1,800,000.00

Problem Definition

Shouldice is facing a challenge of change. The question is “are we operating at the highest level” for a service company. Should we increase capacity to meet the market need and upset the existing work force and lower service quality? Shouldice administrators are concerned about maintaining control over the quality of service delivered.

Problem Justification

From the case it is assumed that they are operating at the “highest level” due to how efficiently the hospital is ran and how the patients appear to be pleased with their job. The utilization of the hospital is 71% capacity of there full time potential of seven-day operations. If they increase their rate of service utilization this will decrease the service quality.

The staff also has limited flexibility. There are twelve surgeons to perform a one-hour operation, which only allows four patients a day for each surgeon. It will be very hard to cross train surgeons, which is a specialized field so there will be limitation to training.

From the case it states the doctors and support staff are happy with their jobs, and the patients are satisfied with the service. So to further expand capacity this might make it hard to maintain the same level of service.

List of Alternative Courses of Actions

From the case study the reason Shouldice’s management has been thinking of expanding the hospital’s capacity is to service a considerable unsatisfied demand.

1. They could do nothing different

. They could add an additional day by operating on Saturday

. They can increase additional beds by 50%

Evaluation of Alternatives

1. Doing nothing is a valid consideration. Their style set Shouldice apart from others. It stated from the case the facility has a country club atmosphere, superior nursing staff, and built-in-socializing, which make a surprisingly pleasant experience out of an inherently unpleasant medical procedure.

. Adding an additional operating day on Saturday is also a valid consideration. Due to Shouldice would be within their capacity. This would increase rate of service utilization beyond 71%.

. Increasing the number of beds by 50% would not be a good idea due to adding additional staff support. This would create training issues, which would have an overhead expense. Also if Shouldice’s administrators decide to expand the facility this would disrupt the country club atmosphere.


A.I.M. recommends Shouldice should not increase their capacity, as they are working within their capacity and still able to maintain a country club atmosphere. The staff is happy and with a happy staff you have less worries about people leaving the company to pursue other opportunities.

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