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Shouldice Hospital Limited B Case Solution

Solution Id Length Case Author Case Publisher
2863 1415 Words (8 Pages) James L. Heskett and Roger Hallowell Harvard Business School : 913405
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In September 2012, Centric Health, a Toronto-based healthcare company, acquired Shouldice Hospital, a leader in inguinal hernia repair. This company was acquired to create a Canadian integrated for-profit company. The sale went through for 13.5 million dollars in cash and $750,000 in company shares and working capital. All the operating assets, trademarks, and equipment were sold, and the land for the hospital was leased. Shouldice wanted to expand beyond Toronto as Centric had already shown rapid growth with 3400+ employees and operations in 980 locations. Their revenue in 2012 came from retirement homes, as well as pharmacies, surgical & medical services, medical equipment sales, in addition to insurance company injury assessments. The main target demographic was seniors, businesses, and healthcare consumers. The owning families believed the acquisition would benefit Shouldice's future, despite some speculation regarding government restrictions on expanding services, as they believed in government-funded healthcare.

Following questions are answered in this case study solution:

  1. As an advisor to Chairman Jack Shevell and his management team at Centric, what advice would you give them concerning the future development of Shouldice Hospital as a business?

  2. Specifically, should Centric consider:

    a. Offering hernia repair at one or more its seven surgical centers providing other types of surgical services?

    b. Creating one or more free-standing shouldice Hospital, either in Canada or elsewhere in North America under Centric’s full ownership? 

    c. Entering into franchise partnership in which franchises would: (invest in physical facilities only, allowing Centric to operate the service, (invest in, and operate, facilities under the Shouldice name, paying Centric a franchise fee? 

    d. Something else

  3. What could go wrong in implementing each of these alternatives? What should be done to make sure that what could go wrong doesn’t happen?

Case Study Questions Answers

1. As an advisor to Chairman Jack Shevell and his management team at Centric, what advice would you give them concerning the future development of Shouldice Hospital as a business?

Shouldice Hospital's future as a business is something I'd be happy to advise Chairman Jack Shevell and his management team at Centric on. My recommendations would mainly be focused on strategic growth, operational improvements, and capitalizing on the Shouldice name.

I think it would be a good idea for Shouldice Hospital to look into expanding beyond its current location in Toronto. Centric can reach more people who need the specialized surgical repair of inguinal hernias if it opens up new Shouldice facilities in strategic locations across Canada. Maintaining the hospital's stellar reputation while accommodating this growth calls for precise market research to pinpoint areas of high demand and low competition.

The second piece of advice I have for Shouldice Hospital is to implement operational enhancements to streamline processes and increase efficiency. One way to accomplish this would be to implement the latest innovations in surgical methods, such as less invasive outpatient procedures. Shouldice is able to adapt to the changing healthcare system and meet the needs of their patients by embracing these innovations. Improving financial performance and long-term viability can also be helped along by optimizing supply chain management and investigating cost-effective measures.

In addition, capitalizing on the Shouldice name and its history of providing excellent medical care is crucial. Centric can expand its patient base through smart advertising and strategic collaborations. Shouldice's position in the market can be strengthened by working with insurers, government agencies, and other healthcare providers to guarantee a steady stream of referrals. Furthermore, continuing the hospital's dedication to providing exceptional patient care is consistent with Centric's values and can be supported by investments in staff training and development programs. Centric must lastly keep up the personalized service for which Shouldice Hospital is known and promote a patient-centered approach. Centric can set itself apart in the healthcare market and earn the loyalty of patients and referring doctors by placing a premium on these factors.

In conclusion, I would recommend that Chairman Jack Shevell and the management team at Centric prioritize patient-centered care while actively pursuing strategic geographic expansion, implementing operational enhancements, and making use of the Shouldice brand. By implementing the aforementioned strategies, Centric can set Shouldice Hospital up for long-term success in the competitive healthcare market.

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