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    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 Preview

    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 ...

    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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