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A day-surgery centre: a model in four parts

You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.

Case timer

00:00

Target length:

1. Read the prompt aloud

Read it slowly, then pause. Let the candidate ask questions before they structure.

A hospital group in India is testing a day-surgery centre in Pune. Build the simple model: inputs, calculations, outputs and a check.

Format note: Inputs: 20 procedures a day, 300 working days a year, INR 60,000 revenue per procedure, variable costs (consumables, drugs, staff paid per case) of 60 percent of revenue, and fixed costs of INR 9.6 crore (96 million) a year. All figures are illustrative.

2. Answers to clarifying questions

This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.

3. A model structure

Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.

Does the centre make money, and how much room is there?
- Inputs: volume, days, price, variable cost share, fixed costs
- Calculations: procedures, revenue, contribution, profit
- Outputs: profit a year and breakeven volume
- Check: profit worked out a second way

4. The working, step by step

Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.

Step 1: Procedures a year
What a strong candidate does: 20 a day for 300 days.
Procedures a year: 20 × 300 = 6,000
Step 2: Contribution per procedure
What a strong candidate does: Revenue minus variable costs of 60 percent: 40 percent of INR 60,000.
Contribution per procedure (INR): 60,000 × (1 - 0.6) = 24,000
Step 3: Profit a year
What a strong candidate does: Contribution on 6,000 procedures minus fixed costs, in INR millions.
Profit a year (INR millions): 6,000 × 24,000 ÷ 1,000,000 - 96 = 48
Step 4: Check: profit a second way
What a strong candidate does: Revenue minus variable costs minus fixed costs must give the same answer.
Revenue minus all costs (INR millions): 6,000 × 60,000 ÷ 1,000,000 - 6,000 × 36,000 ÷ 1,000,000 - 96 = 48
Step 5: Breakeven a year
What a strong candidate does: Fixed costs divided by contribution per procedure.
Breakeven procedures a year: 96,000,000 ÷ 24,000 = 4,000
Step 6: Breakeven a day
What a strong candidate does: Spread over 300 working days.
Breakeven procedures a day: 4,000 ÷ 300 = 13.33

The recommendation to listen for

At the end, say: "The CEO walks in. What is your recommendation?"

Open the centre: at 20 procedures a day it makes about INR 4.8 crore (48 million) a year, and it breaks even at about 13 to 14 procedures a day, so demand can fall by about a third before it loses money. The model ties out: profit is the same worked out two ways. The main risk is a slow first year, so the next step is to check how fast the group's last two openings reached their volumes.

Risks a strong answer names: A slow ramp-up in the first year keeps volumes below breakeven.

Next steps: Check the ramp-up of the last two openings; Agree the staffing plan with the medical director.

Score the candidate

Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.

This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?

Structuring

1: No clear structure, or a memorized framework that does not fit the problem.
3: A sensible structure, but with some overlap, a gap, or no clear priority.
5: A structure built for this problem, with no overlap and no gaps, a stated hypothesis, and a clear first step.

Math

1: Frequent errors, no units, or needed heavy help to finish.
3: Right answers but slow or messy working, or one error caught late.
5: Accurate and clearly narrated, with units, a sense check, and what the number means.

Exhibit reading

1: Read the chart aloud without finding the number that matters.
3: Found the key number but gave only part of the so-what.
5: Pulled the right number quickly and said what it means for the case.

Synthesis

1: Summarized what was done, with no clear answer.
3: Gave an answer, but with weak reasons or no next step.
5: Answer first, then two or three reasons with numbers, the main risk, and next steps.

Communication

1: Hard to follow: long silences, no signposting.
3: Clear most of the time, with some rambling.
5: Calm and concise, signposted each step, and checked in with the interviewer.

Total

0 out of 25

Score all five criteria to see the band and the feedback template.