Michael Hardee Jr

OPM $625$

Due Sunday February $18$th

Read the case, Shouldice Hospital $$ A Cut Above, at the end of Chapter $4,$ Strategic Capacity Management. Prepare a report with answers to the questions given at the end of the case. Submit your report in the $$Assignment folder$$ before the end of the session. We will discuss the case in the next session.

$1.$ How well is the hospital currently utilizing its beds?

$2.$ Develop a similar table to show the effects of adding operations on Saturday. $($Assume that $30$ operations would still be performed each day.$)$ How would this affect the utilization of the bed capacity? Is this capacity sufficient for the additional patients?

$3.$ Now look at the effect of increasing the number of beds by $50$ percent. How many operations could the hospital perform per day before running out of bed capacity? $($Assume operations are performed five days per week, with the same number performed on each day.$)$ How well would the new resources be utilized relative to the current operation? Could the hospital really perform these many operations? Why? $($Hint: Look at the capacity of the $12$ surgeons and the five operating rooms.$)$

$4.$ 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 $$2,000($U$.$S$.$ dollars$),$ with an average rate of $$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 expansion within a five$-$year time.