Question

3. What are Mayo Clinic current revenue sources by payor? Is it favorable? How is it changing?​

Answer 1

Introduction

Mayo clinic is situated in Rochester and it has its branches in Arizona and Florida. Mayo clinic is an organization which provides non profit medical practice for the people all over the world. There are more than 4500 physician and scientist and more than 58000 allied health staff employed to render health services. The logo of the clinic focuses on three parts such as patient care practice, Education and research. Among these three the primary statement is patient care practice.

Mission       

Inspiring hope and contributing to health and wellbeing by providing the best care to every patient, through integrated clinical practice, education and research.

In order to achieve this mission there are some values to follow;

         Respect, integrity, compassion, Healing, Teamwork, innovation and excellence.

Financial support

• Federal health IT incentives
• Medicare and Medicaid health insurance
• Government health insurance

Federal health IT incentives

It is one of main revenue source for the mayo clinic to meet the health care needs of the patient with innovative and advanced technologies

Medicare and Medicaid insurance

Theses are the private health insurance institutions, which support the mayo clinic financially. On the other hand these institutions are growing more and more with the benefits received from mayo clinic. So they cover more customers all over the world and indirectly they are getting expanded in their business.

Government health insurance

These are insurance secured by Government for the poor people. Mayo clinic will not get more financial support by this way.

Facts about Mayo clinic

Every year Mayo clinic covers 1.2 million patients from all over 150 countries.

Advanced health care technologies and financial crisis

We need to think that the world number one hospital, should maintain all the innovative and advanced technologies in providing treatment, investigations, administration, manpower, infrastructure and other maintenance of managerial activities. If an institution is not getting adequate financial support form the revenue sources it may affect the quality of the health care and mission of the institution. More over Mayo experience this financial crisis due to the federal health reforms and the Affordable care Act reduced the number of insured patients. So it is very important to take necessary steps to prevent financial crisis.

Current revenue sources

Although it has financial support or income from Government insurance, to incorporate with quality innovative care an institution needs more revenue sources. So Mayo gives preference to privately insured patients through Medicaid and Medicare health insurance scheme.

In this plan Mayo gives first preference to the private insured patients since the number of private insured patients is increased

Favorable or Unfavorable

Some how the new plan affect the poor people. They will not get adequate specialized care for their health needs. They have to wait until their turn come. In this case the Mission of the Mayo clinic that is Patient care practice will not be met.

In other hand if they do not take some measurement to overcome the financial crisis, the clinic will not have adequate income at the end of this year to pay salaries for the workers.

Changing concept of new policy

The favorable condition in this plan is this policy will not be implemented in Emergency room. They care for the patients who are in need first.

Another situation believed as favor are most of the patients are privately insured patients, they only seek medical advice regularly, but the poor people neglect their health care so they come to emergency room when they are in critical and the changed policy is not applicable for the emergency room

Conclusion

The core value of Mayo clinic is ‘Patient care practice according to the needs’. If the reformed policy is applied, there is no way to meet the patient needs according to prioritized based. So the Mayo clinic can look for other options to maintain the equality of health care.