Hospital Expansion Analysis- Shouldice Hospital Case Study
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Using the case study Shouldice Hospital Limited (by James Heskett, Harvard Business School case, no. 9-683-068) please help with these questions:
1. Of these alternatives, which one (if any) do you recommend and why? What are the problems you foresee in implementing your selected alternative? Note: the hostel rooms each have one bed and are not used daily but for occasional excess demand.
2. Should Shouldice diversify? If so, into what products/services and why?
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Solution Summary
This solution examines the possible expansion of a hospital and provides a recommendation, identification of possible issues and a perspective of possible diversification of the hospital.
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Attached are thoughts on both of the questions above.
Please note that I recommended that Shouldice expand to the US and that Shouldice should indeed diversify into hemorrhoids and varicose veins (both vascular specialties).
(1) I believe that Shouldice Hospital should establish a hospital with a similar design in the United States.
Rationale:
? 42% of patients come from the US
o The potential US market could presumably be larger as many US patients may not have wanted to travel to Canada for their surgery
? Much of the patient load from the US will be diverted to the US location and possibly some international patients that prefer a US location
? Many US patients will no longer have diagnosis via mail, but can be diagnosed live by a physician
? Establishing another location will take some of the stress off of the current location and allow for expansion
o With the majority of the US patients (and presumably some international patients as well) selecting the US location, Shouldice can begin to market to the Canadian population ...
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