Shouldice hospital
…
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…For hospital= $ 2.8 million
For clinic = $ 2 million
Total budget for operating costs= $ 4.8 million
Total number of operations performed in 1982 = 6850
Hence Average Cost per patient borne by the hospital = $ 4.8 million / 6850 = $ 701
Exhibit 3 : Net profit increase using proposed solution
Net profit per patient = 1029 - 701
= $328
By working on Saturdays we are increasing the working days by 52.
No of operations per year = 6850
No of working days per year = 261
Hence, number of operations per day= 6850/261
= 27
Hence net profit increase per year = 328 * 27 * 52
= $ 0.46 million
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