shouldice hospital - a cut above

Team AustinSHOULDICE HOSPITAL – A CUT ABOVE:

MANA 5305DR. Avery

Taressa StoneWilliam Condron

Jason GatesMarcos LucioJustin Clark

#1

9030

Check-in day Mon Tues Wed Thurs Fri Sat Sun

Monday 30 30 30Tuesday 30 30 30

Wednesday 30 30 30Thursday 30 30 30

FridaySaturdaySunday 30 30 30

60 90 90 90 60 30 3066.7% 100.0% 100.0% 100.0% 66.7% 33.3% 33.3%

150630450

71.4%12.530

Question #1:See current bed utilization above, 71.4%.

= Total Operations per Week= Available Bed-Days= Used Bed-Days= Bed Utilization= Operations per Surgeon= Operations per Operating Room

Utilization by Day

= Total Beds= Daily Admissions

Beds Required

Total by Day

#2

9030




Friday 30 30 30SaturdaySunday 30 30 30

60 90 90 90 90 60 6066.7% 100.0% 100.0% 100.0% 100.0% 66.7% 66.7%

180630540

85.7%1536

Question #2:This option, adding surgeries on Saturdays while maintaining the same number of surgeries per day,would increase bed utilization by 14.3% to a total utilization rate of 85.7%. The current number of bedsis sufficient to handle these extra patients. At 1 hour per surgery, including all prep, these surgeriescould be covered by the current staff of surgeons, but it would require some schedule adjustments.

= Operations per Operating Room


Beds Required

Total by DayUtilization by Day

= Total Operations per Week= Available Bed-Days= Used Bed-Days= Bed Utilization= Operations per Surgeon

#3

13545




FridaySaturdaySunday 45 45 45

90 135 135 135 90 45 4566.7% 100.0% 100.0% 100.0% 66.7% 33.3% 33.3%

225945675

71.4%18.75

45

Total operating room hours available = 200 (5 operating rooms x 8 hrs x 5 days)

Question #3:

With the expansion (adding 45 beds), the maximum number of surgeries the hospital could theoretically perform per day (assuming 5 surgery days remain), considering only bed availability, would be 45 surgeries. However, there would not be enough operating room hours available to handle this many surgeries without any changes to the hours of operations. The new bed capacity could not be fully utilized without additional changes (additional operating rooms or extended hours). The maximum surgeries per day under the current operations with the new beds would be 40, totaling 200 per week.

= Total Operations per Week= Available Bed-Days= Used Bed-Days= Bed Utilization= Operations per Surgeon= Operations per Operating Room

Utilization by Day


Beds Required

Total by Day

#4

45 = Additional beds$100,000 = Cost per additional bed

$4,500,000 = Total expansion cost

$1,300 = Revenue per operation$600 = Surgeon cost per operation$700 = Additional revenue per operation

* 75 = Additional operations

$52,500 = Incremental revenue85.7 = Payback in weeks

* For this analysis we are using 75 as the number of additional operations per week because 45 is the maximum number of operations that could be done per day without running out of beds. However, using all of the same inputs except for the additional beds, only 40 operations could be done. (5 operating rooms X 8 hrs per day = 40 hours, each surgery takes an hour, so that means 40 operations can be done per day without changing the hours of the Surgical staff.) In order to achieve 75 additional surgeries per week, there would have to be severe changes, such as expanding the number of operating rooms or extending the hours during which operations are performed (and therefore adjusting Surgeons' work schedules to accomodate the additional operations).

This is the financial analysis for 50% bed expansion

Expansion Costs

Revenue/Cost per Surgery

Financial Analysis

shouldice hospital - a cut above

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