Although financial data are sketchy, an estimate from a construction company indicates that adding bed capacity would cost about $100,000.00 per bed .In addition, the rate charged for the hernia surgery varies between about $900 and $2,000 (US dollars), with an average rate of $1,300 per operation. The surgeons are paid a flat $600 per operation. Due to the uncertainties in government health care legislation. Shouldice Hospital would like to justify an expansion from 90 beds to 135 beds within a five-year time period. conclusion There are a few options Shouldice Hospital can consider to expand their current capacity; the first option would be to build additional facilities to house the additional patients. They could either add-on to their existing facilities in Canada or build a new clinic internationally, most likely in the United States. 1) Currently the hospital doesnt operate on saturday. Increasing the capacity by scheduling Saturday operations is a swift and cost effective solution. It does not violate any government regulations and at the same time also leverages the existing strength of the hospital in rendering high quality services to the patients. 2) By implementing the shift system, the existing strengths of the hospital will be leveraged. This is similar to the the above saiThe selection of a successor to Dr. Obney is a step that must be taken soond plan in terms of the expenditure involved and the time frame being talked of. The selection of a successor to Dr. Obney is a step that must be taken soon. 3) The successor to Dr. Obney as Chief Surgeon has to be selected. The selection of such a candidate should preferably be done among the existing doctors in the hospital. In case a specialized doctor from outside is appointed, proper induction to acquaint the existing surgeons must be carried out. More challenges: 1) Marketing the services of the hospital, though would lead to an increased awareness of the authenticity of the Shouldice method, while exposing the piracy in the method, but at the same time it will also lead to an increased number of patients wanting to come to the hospital. 2) The plan of expanding the capacity by moving into another geographical segment such as the United States, involves extensive capital expenditure in setting up a new facility. Also by dividing half of the specialized staff into the two respective facilities, the quality levels may not remain same for the initial span of time