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    The document compares the costs incurred by patients undergoing hernia surgery at Shouldice Hospital versus other hospitals. It shows that the patient fee at Shouldice is $954 compared to $2000-4000 at other hospitals. The time lost from work and recovery is also shorter at Shouldice. As a result, the total costs including potential recurrence costs are 50% lower at Shouldice compared to other hospitals. Shouldice has a much lower recurrence rate of 0.8% versus 10% elsewhere, further reducing costs over the long run.

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    The document compares the costs incurred by patients undergoing hernia surgery at Shouldice Hospital versus other hospitals. It shows that the patient fee at Shouldice is $954 compared to $2000-4000 at other hospitals. The time lost from work and recovery is also shorter at Shouldice. As a result, the total costs including potential recurrence costs are 50% lower at Shouldice compared to other hospitals. Shouldice has a much lower recurrence rate of 0.8% versus 10% elsewhere, further reducing costs over the long run.

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    16 views2 pages

    Case OM

    Uploaded by

    jmayankjain97
    The document compares the costs incurred by patients undergoing hernia surgery at Shouldice Hospital versus other hospitals. It shows that the patient fee at Shouldice is $954 compared to $2000-4000 at other hospitals. The time lost from work and recovery is also shorter at Shouldice. As a result, the total costs including potential recurrence costs are 50% lower at Shouldice compared to other hospitals. Shouldice has a much lower recurrence rate of 0.8% versus 10% elsewhere, further reducing costs over the long run.

    Copyright:

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    of 2

    COMPARISON OF COST INCURRED BY PATIENT BETWEEN

    SHOULDICE HOSPITAL AND OTHER HOSPITALS

    Shouldice Others

    Patient fee *$954 $2000-4000

    Transportation $200-600 $0

    Time lost (working days)

    • During Stay
    5-8 Days
    4 days
    • During Recovery
    10 Days
    5 Days

    Value of Time Lost

    Assuming min. Earning $ 50** $450 $850

    TOTAL (pre-recurrence) $1604 - $2004 $2850-


    $4850

    Probability of Recurrence 0.80% 10.00%

    Ex. Cost of Recurrence*** $13-$16 $285-$485

    TOTAL $1617-$2020 $3135-


    $5335

    As it is clear from the table, the costs incurred by patient in Shouldice


    hospital is far less than those incurred in other hospital. The facts are
    mentioned in case. Patient cost in case of Shouldice is approximately 50% of
    what is incurred in other hospitals. This compensates the travelling costs as
    other hospitals do not charge them. Also, Recovery for patients is much
    quicker in Shouldice. Therefore, considering the GDP of America in 1983
    which is approximately $50 the patient saves around 400$. Recurrence costs
    are much less as compared to other hospitals as probability of recurrence is
    much less in this case. Therefore, if overall figures are considered costs at
    Shouldice is 50% of what patient would be paying in other hospitals. This can
    be shown graphically as below:

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