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