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Mayo Clinic Analysis

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HA 499-01

5 July 2017

Introduction

Mayo Clinic is the first and largest integrate non-profit group enterprise around the globe. Physicians in numerous medical fields work together for the purpose of delivering quality care to the patients. Mayo clinic is a not-for-profit organization that has more than 4000 scientists and physicians and other 57000 health staff. This company has a common philosophy and a system that emphasizes the importance of putting the needs of the patients first. It has sites in areas such as Minnesota, Rochester, Jacksonville and also Arizona (Mayo Clinic, 2017). The organization is both medical research and medical practice based group. It spends more than 660 million dollars on research every year and it also specializes in treating critical cases. The organization has expanded in the recent years through acquisition of other local hospital systems. It aims at changing the main branch into a destination medical center where it is estimated to spend billions of dollars. The company is sound financially recording high revenues every year with government health IT incentives being one of the min drivers of its increased revenues. The paper will deeply analyze Mayo Clinic and also how financial analysis has affected various decision-making processes of the company and also illustrate the relationship between financial analysis and operations assessment and also quality improvement.

Mayo Clinic Mission and Values

The mission statement of Mayo Clinic is to inspire hope and also significantly contribute towards the wellbeing and health of individuals through the provision of the best possible care to all patients through this integrated clinical practice, research and education systems. The needs of the patients always come first for the company (Mayo Clinic, 2017). The company’s values include respect whereby they must treat all individuals with dignity. This includes patients, their families and also other workers. The enterprise has focused on adhering to the highest professional standard, ethics and also personal accountability. This is highly essential as it builds trust with the patients. The enterprise focuses on providing the best care through treating patient and their family members with empathy and sensitivity.

Financial Analysis

Analysis of the service reimbursement

On numerous occasions, the enterprise has attempted to remove financial considerations from the provision of medical care. Mayo Clinic has a direct payment contract with multiple international insurers. Their dedicated staff in international account representatives has assisted patients and families with financial details before, during and after they visit the health institution.

The company offers managed care plans. Here, this arrangement is one involving a selected group of organizations. Through this method, Mayo Clinic has reduced the cost of healthcare and improved the quality of car through numerous techniques. Managed care, therefore, brings the health insurer, health care providers, medical facilities and also the person that wants to be insured under one umbrella. Under this plan, Mayo Clinic offers service such as information concerning deposits and payments. It also indicates fee estimate and payment updates for medical services ordered by a Mayo physician. Also, patients usually are provided with low upfront costs and also low premiums.

Methods of funding

Mayo Clinic currently receives over 34 million dollars in research funding from foundations, government, industry groups and also benefactor gifts. In 2012, the research personnel of Mayo Clinic included over three thousand students, allied health workers, medical scientists and also doctors (Mayo Clinic, 2017). Additionally, in 2012 the health institution had almost nine thousand human research studies and also over five thousand six hundred research publications and review articles in peer-reviewed journals.

Explain how financial analysis affects management decisions.

Financial analysis is essential as it focuses on examination of current and aspects of financial statements of the company. This process helps in discovering possible weaknesses of the enterprise, and they can be eventually fixed. Financial evaluations, therefore, are important in management decisions as they will evaluate the strengths of the company and lead to creation of strategies that will focus on solving the weaknesses of the enterprise (Bose, 2010).

Financial analysis is highly essential in decision making. Assessments of the balance sheet, income statement of the company, are all associated with interpretation of the trends and also strength and weaknesses of the enterprise. These evaluations might yield adequate information that will enable management to make proper projections of revenues and also profits for five years (Finkler, et al., 2011). With the knowledge of trends within the general economy and also the industry, the enterprise can make informed decisions and formulate reasonable estimates of how well the company will fare in the future. Such evaluations can be critical to organizations that need to plan initiatives such as equipment purchases.

When financial analysis is done on a consistent basis, companies can make important investment decisions and also recommendations by sound reasoning. Through financial analysis, an enterprise such as Mayo Clinic can utilize these assessments which can be used in the administration of care. The company can make considerations on whether the purchase care equipment necessary or the provision of quality care. By making a valid assessment, they can determine whether or not it is viable to buy such equipment.

Financial analysis, operations assessment, and quality improvement

The relationship between financial analysis, operations assessments and quality improvement is essential for the success of any organization. Financial analysis typically involves handling financial operations while also assessing the various cost in running operations of the business that provide quality outcomes (Bose, 2010).

Health care providers such as Mayo Clinic make many decisions concerning the importance of introducing new procedures that may lead to improvement of quality of care provided to the patient. Financial analysis acts as a gap that identifies the best possible solution for integrating this strategy into the company. Operations and financial assessments are intertwined. Mayo Clinic can focus on acquiring practices of prominent physicians which would ultimately bring in new revenues. These revenues will assist the company in purchasing extensive treatment systems that can be essential for the enterprise (Finkler, et al., 2011).

To a health insurer, cost effective medicine is necessary. Insurers typically create lists of drugs that they may pay for and also the treatment guidelines for contracting physicians. Insurers then utilize various technological applications in tracking individual doctors’ utilization, their choices of treatments to ensure that they follow these guidelines (Finkler, et al., 2011). Cost effectiveness is essential to an insurer’s bottom line that development of directives raises towards the level of financial analysis. These tasks require extensive medical know-how. The issuer usually wants the treatments to work to avoid higher future costs.

With the initiation of the Affordable Care Act, most insurers have recalculated their plans and also premium structures. Providers and insurers need these processes as they will be essential for their success. Mayo Clinic can utilize financial statement projections in providing information to assist management in guiding the future of the company. By concentrating on this data, managers of the company can make decisions that focus on continuous improvement and are justifiable based on the rational assessment of the data of the institution.

Quality and Ethics

Accreditation and Awards

Mayo Clinic has received recognition for its relentless efforts in the establishment of a caring service environment whereby the differences of people are valued, and this enables people to achieve and also contribute to their highest potential. Mayo Clinic has also been acknowledged as a Diversity Inc Top health institution and also health system. The enterprise has earned this designation since 2011 (Mayo Clinic, 2017). The Hispanic Network Magazine announced that Mayo Clinic is a top hospital for Hispanics in its annual Best of the Best issue. Mayo Clinic has always engaged with Spanish-speaking audiences around the world through community collaborations centered on patient care, education and research.

Regulation

Mayo’s policy has mainly focused on prevention of unethical and also unlawful behavior. It has also highlighted that it would stop such behavior immediately upon discovery and reprimand workers that violate the standards in the code. All employees must comply with this code (Ghosh, 2010). The enterprise has indicated that all patients have the right to emergency treatment in stabilizing their condition if or when presented to the emergency department of the institution. All individuals shall be provided with unlimited access to treatment or available accommodations or medically indicated regardless of sex, race or nationality.

Ethical issues regarding who receives care at the organization

Medical professionals in Mayo Clinic are usually faced with the ethical dilemma whereby the patients cannot afford the medical services being provided, but they still need treatment. Most of the amount of actual payment the enterprise receives is based on the government assisted medical programs or insurance that pays for these patient services (Ghosh, 2010). Some patients, therefore, may not be as profitable as others. Mayo Clinic consequentially faces the ethical issue of wanting to help everyone that needs help, however; the organization may run out of funds for sustainability if it embarks on this and ultimately, go out of business.

Marketing

The enterprise has entirely embraced digital marketing system. Mayo Clinic jumped into digital marketing very early. This strategy has become highly successful for the company since it utilizes its extensive library of online content to make important early connections (Seltman, 2008). When a potential patient is conducting research, they may search around the internet and eventually find one of their approved doctor articles, and Mayo Clinic then establishes itself as a brand to trust.

Mayo Clinic offers quality health information and treatment. They have also focused on development of communities where patients can belong. These communities are made up of individuals spread out globally. Therefore, through many outreach and educational programs, the company has attracted new patients and also investors that have been prominent to the success of Mayo Clinic.

Conclusion

In conclusion, for Mayo Clinic to maintain its success, all its physicians, administration, nurses and also their allied staff must be actively involved in the improvement of patient care processes and strategic planning. This will ensure the company advances the value of its services through improved quality and also cost effectiveness apart from concentrating on the needs of its patient and the community.

References

Bose, D. C. (2010). Fundamentals of Financial management. PHI Learning Pvt. Ltd..

Finkler, S. A., Ward, D. M., & Calabrese, T. (2011). Accounting fundamentals for health care management. Jones & Bartlett Publishers.

Ghosh, A. K. (Ed.). (2010). Mayo Clinic internal medicine board review. Oxford university press.

Mayo Clinic, (2017). About Mayo Clinic. Mayo Clinic Mission and Values. Retrieved online from: http://www.mayoclinic.org/about-mayo-clinic/mission-values

Mayo Clinic, (2017). Mayo Clinic. About Mayo Clinic. Retrieved online from: http://www.mayoclinic.org/

Mayo Clinic, (2017). Mayo Clinic. Funding Opportunities. Retrieved online from: http://www.mayo.edu/ctsa/resources/funding-opportunities

Seltman, K. (2008). Management Lessons from Mayo Clinic: Inside One of the World's Most Admired Service Organizations. McGraw-Hill Publishing.