Shouldice Case

1. How successful is Shouldice?

Shouldice was a very successful hospital. Shouldice created a niche in the surgical field and developed a process that allowed for a tremendous client experience from start to finish, and even after operation. Shouldice hospital was very successful in achieving a low recurrence rate of 0.8% compared to normal rate of 10%. Patients also paid much less (<$1000 compared to $2000 - $4000 at other hospitals), and recovered much faster. A lot of the patients can walk from their operation table and return to work within 1 week while other patients with regular treatment might take 4 weeks. Shouldice had not only satisfied patients but also highly satisfied employees which was really important in offering the best service possible. Doctors and nurses at shoulder were more productive than at other hospitals (perform 600 operations per year, typical surgeon perform 25 to 50 only.

2. How does Shouldice maximize perceived customer value?

Shouldice combines excellent medical outcomes with a first-in-class patient experience, at a price that is well below rates charged by other private hospitals. They do this by carefully monitoring and considering cost to serve (cafeteria and facilities savings were mentioned) and carefully screening patients to minimize risk of failed procedures (which limits litigation risk). Customers perceive high value because they are well-cared for and feel a connection to the hospital community (including other patients), staff and surgeons.

3. What, if any, marketing strategies has Shouldice used?

The hospital relied on word of mouth advertising and brand loyalty. Through their alumni reunions and careful follow-up with patients, they have created a hernia brand community for Shouldice, which while weird, has been effective. They also seem to have invested time and energy (deliberate or not)