George
If your theatre/anaesthetic staff are cancelling paediatric operations when the oral temperature is above 37.3, then your criteria is too stringent.
As pointed out by other contributors, there are differences between makes and types of thermometers with regard to accuracy and temperature readout. Also, there will be temperature differences within the buccal cavity, so the reading will depend on where the tip of the probe is placed. In addition, the buccal cavity temperature in children can be raised or lowered by their abilty to scream/ hyperventilate etc.
There are too many variables to have a cut off at 37.3 and it should be raised to 37.5 (in my opinion).