Week 8 Case Study 10 - Shouldice Hospital Limited

WEEK 8 CASE STUDY 10 – SHOULDICE HOSPITAL LIMITED 1
Week 8 Case Study 10 – Shouldice Hospital Limited
Benedictine University
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Today, with reimbursements decreasing and risk shifting, hospitals and health systems
must act like other businesses. Hospitals must engage their consumers and prospects,
communicate with them, and have relationships with them. They also must generate demand for
their profitable and high-value services. Shouldice Hospital has a solid brand recognition in
Ontario, Canada. The Shouldice name, hernia surgical procedure design, and personal, somewhat
intimate, patient relationship features distinguish the hospital from that of their competitors. The
Shouldice Hospital branding has successfully embedded its’ unique name and image in the minds
of patients through strategies and techniques applied by the hospital staff; not to take risks to
achieve absolute perfection. Excellence is the enemy of good. (Lovelock & Wirtz, 2011)
Minimal systemic market data about their patients has been done,
however, the poll conducted by students of my undergraduate alma mater, DePaul University,
demonstrated Shouldice Hospitals primary patient demographics include college educated
Canadian males, 41 to 60 plus years of age. The patients required almost equitable operations of
single and double hernia procedures. Only 11.63% of the patients traveled from the
United States. Physicians and nursing care along with friendship with other
patients where highly preferred in the patients’ needs assessment, however,
what I found most interesting was the fees charged for the operation and
hospital stay were not as important to the patients that came to Shouldice
Hospital for treatment.
Compared to the United States General Surgery salaries, the Canadian
Surgeons salary at Shouldice Hospital was low although its 15% above the
average income for Ontario, CA. However, the surgeons annual bonus pool
paid was attractive. Shouldice also maintained a low employee turnover. Shouldice
employees were cross trained and the administration met their employees needs which made the
hospital an enjoyable place to work. It is also crucial for high performing health care
organizations to understand the needs and relationships between the staff and other stakeholders
related to the work environments they are building. Administrative and support staff
were nonunion and the hospital maintained pay scales higher than the union
scale for comparable jobs in the area. Although the employee profit sharing
plan was low, Shouldice created an inclusive work environment that was
transferable and communicable to their patient care model. It has become
increasingly evident that the atmosphere and working conditions within a hospital can have a
profound impact on patient outcomes.
Shouldice administration and staff created a healing environment. In
recent years, the effects of the physical environment on the patient healing process and well-
being have proved to be increasingly relevant for patients and their families as well as for
healthcare staff. Healthcare discussions now focus on traditional and institutionally designed
healthcare facilities relative to the actual well-being of patients as an indicator of their health and
recovery. The Shouldice Hospital healing environment contributed to reducing errors, falls, and
infections by creating a controlled comfortable atmosphere that focused primarily on the patients
complete physical, mental, and social well-being. This approach assured their patients experience
would be at its highest levels.
Health Care in Canada is delivered through thirteen provincial and territorial systems of
publicly funded health care, informally called Medicare. It is guided by the provisions of the
Canada Health Act of 1984. (Wikipedia, 2018) The Canadian government does not participate in
day-to-day care or collect any information about an individual's health, which remains
confidential between a person and their physician. Competitive practices such as advertising are
kept to a minimum, thus maximizing the percentage of revenues that go directly towards care.
There are no deductibles on basic health care and co-pays are extremely low or non-existent.
Canadian cost of operations provides Shouldice Hospital with comparative advantages against
local and national competition. Word-of-Mouth advertising is effective to reduce marketing costs
and increase capacity in this environment.
Shouldice Hospital was faced with a capacity growth dilemma. How to
increase capacity while at the same time maintaining control over the quality
of service delivered, the future role of government in the operation of the
hospital and the use of the Shouldice name by potential competitors.
(Lovelock & Wirtz, 2011) The hospital facility had already reached maximum
utilization capacity. The doctors and staff were already opposed to
implementing weekend operations. I suggest Shouldice must stay the course
of their initial intent to maintain a work-life balance for their employees and
expand their operations in the other Canadian provinces while also
diversifying into other specialties offering similar opportunities like eye
surgery and varicose veins. They should not market their services in Canada
until their operations are able to maintain their capacity and fulfil the
demand. If service marketing occurred prematurely, this would result in
service failures and place the brand at risk of damaging a stellar word-of-
mouth reputation.
Sustaining the seven P’s of the marketing mix product, price, place, promotion,
process, physical environment and people forms the foundation for creating a
sustainable marketing strategy to enhance Shouldice Hospitals brand, sales and
profitability. Shouldice Hospital should create and implement a sustainability
marketing strategy, which, unlike traditional marketing, needs to adhere well to
sustainability principles that include managing the customer interface throughout the
marketing mix. This helps to strengthen the Shouldice Hospital brand identity;
maintain and enhance credibility; and ensure honest, truthful communications and
radical transparency with stakeholders, one of the cornerstones of good sustainability
marketing principles.
References
Lovelock, C., & Wirtz, J., (2011). Services Marketing: People, Technology, Strategy. (7th ed.).
Boston, MA: Prentice Hall.
Whitler, K. A. (2016, May 15). Succeeding In The Healthcare Industry As A Marketer. Retrieved
from https://www.forbes.com/sites/kimberlywhitler/2016/03/20/how-marketers-can-
transfer-into-the-healthcare-industry-successfully/#a0385fe3ac0a
A. (2018, February 19). Strategies For Changing Brand Perception. Retrieved from
https://www.cleverism.com/strategies-for-changing-brand-perception/
Huisman, E., Morales, E., Van Hoof, J., & Kort, H. (2012, July 11). Healing environment: A
review of the impact of physical environmental factors on users. Retrieved from
https://www.sciencedirect.com/science/article/pii/S0360132312001758
Healthcare in Canada. (2018, February 25). Retrieved from
https://en.wikipedia.org/wiki/Healthcare_in_Canada
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WEEK 8 CASE STUDY 10 – SHOULDICE HOSPITAL LIMITED 1

Week 8 Case Study 10 – Shouldice Hospital Limited

demonstrated Shouldice Hospitals primary patient demographics include college educated

patients where highly preferred in the patients’ needs assessment, however,

Hospital for treatment.

Compared to the United States General Surgery salaries, the Canadian

transferable and communicable to their patient care model. It has become

profound impact on patient outcomes.

Shouldice administration and staff created a healing environment. In

would be at its highest levels.

and increase capacity in this environment.

Shouldice Hospital was faced with a capacity growth dilemma. How to

of service delivered, the future role of government in the operation of the

hospital and the use of the Shouldice name by potential competitors.

utilization capacity. The doctors and staff were already opposed to

implementing weekend operations. I suggest Shouldice must stay the course

expand their operations in the other Canadian provinces while also

diversifying into other specialties offering similar opportunities like eye

demand. If service marketing occurred prematurely, this would result in

sustainable marketing strategy to enhance Shouldice Hospitals brand, sales and

profitability. Shouldice Hospital should create and implement a sustainability

marketing strategy, which, unlike traditional marketing, needs to adhere well to

radical transparency with stakeholders, one of the cornerstones of good sustainability

Boston, MA: Prentice Hall.

review of the impact of physical environmental factors on users. Retrieved from

Healthcare in Canada. (2018, February 25). Retrieved from

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