External Healthcare Environment on Organizational Outcomes: Mayo Clinic

The Mayo clinic draws diverse clients from within and outside the United States. Patient confidentiality regulations mean that it is difficult to evaluate various patient profiles. However, studies of the hospital confirm that the Mayo clinic offers a high standard of care to its patients (McCarthy, Mueller & Wrenn, 2009). For instance, the hospital caters to patients that require intensive, personalized care for various conditions (MFMER, 2019). The Mayo clinic also acts a referral hospital as the high number of patients it admits from other healthcare institutions that require more specialized medical attention. In addition to the contact Mayo clinic caregivers have with their patients, the hospital also corresponds with its patients through a well-developed online and smart device applications (McCarty et al., 2009). 

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The supply chains of healthcare institutions are typically complex as they are fragmented and comprise of both the acquisition and disposal of various goods and services. For example, the Mayo clinic sources for various products and services from a number of vetted vendors, with Apple Inc. and Google being a case in point. Using Apple and Google’s platforms, the Mayo clinic has configured access to its various services, easing informational needs for its staff, patients and stakeholders. The clinic’s other stakeholders include insurance vendors, medical equipment and supplies, and accredited regulatory compliance entities. Like other institutions, the Mayo clinic seeks to align its supply chain with the high level of care it delivers to its clients. 

Out of pocket expenditures on health by patients remain an important part of revenue across the healthcare industry despite medical insurance covering for most of the patient care costs at hospitals. Legislation such as the passage of the Affordable Care Act (ACA) in 2010 saw a drop in revenues for medical insurance providers (Kowalski, 2014). Another variable influencing revenue is the level of specialty that hospitals offer. The Mayo clinic, in order to balance remuneration overheads and quality patient care, offers its staff fixed salaries independent of patient volume. Equally, the clinic collaborates directly with some of its suppliers, particularly information technology vendors such as Apple, to maintain user friendly and secure applications to enhance the quality of services for both its staff and patients.

Although the Mayo Clinic is a leading healthcare provider in the Rochester area of Minnesota, it faces growing competition from existing providers such as the John Hopkins Hospital in Baltimore, Maryland. Equally, emerging providers such as the publicly funded Cleveland Medical Mart in Cleveland, Ohio, are challenging the Mayo Clinic’s regional and national dominance as a leading care provider. 

The Mayo clinic has taken a holistic view towards the partnerships it cultivates with other industry actors. The clinic’s paradigm is the replication of its achievements across the healthcare industry and has an established history in that regard with respect to the effects of cortisol on arthritis and the improvements in the heart lung machine (Noseworthy, 2018). While Mayo clinic physicians made improvements on the heart-lung machine process, the Custom Engineering and Development Company of St. Louis scaled up the manufacture and distribution of the machine. Presently, the Mayo Clinic collaborates with actors across diverse areas such as molecular imaging, bio-therapeutics, software engineering and clinical genomics to bring industry-disturbing healthcare solutions to the market (Noseworthy, 2018). 

For instance, in order to expand its operations in the Rochester area and remain competitive, the Mayo clinic counts the city of Rochester and the State of Minnesota as some of its strategic partners. Rochester city’s investment in the clinic’s proton beam therapy project is a good example of one of Mayo’s external strategic partner (Baier, 2019). Other partners include the University of Minnesota, Network of Excellence in healthcare innovation, Doblin/Deloitte and so forth (MFMER, 2019). Internally, the Mayo Clinic’s maintenance of a care coordination and transitions system accountability as well as a peer review and teamwork for high care value matrix are examples of the clinic’s approach to utilizing its staff as in-house assets (McCarthy et al., 2009; MFMER, 2019). Mayo clinic’s efforts to improve healthcare take into account legislation such as the Health Insurance Portability and Accountability Act (HIPPA) and Health Information Technology for Economic and Clinical Health Act (HITECH) that regulate the conduct of caregivers as well as the confidentiality of medical data (Murry, Calhoun & Phillipsen, 2011). 


Baier, E. (2019). How does Mayo stack up against its competitors? Minnesota Public Radio News Retrieved from https://www.mprnews.org/story/2013/03/01/health/mayo-competition

Kowalski, A. E. (2014). The early impact of the Affordable Care Act state-by-state. National Bureau of Economic Research No. w20597 Retrieved from https://www.nber.org/papers/w20597 

Mayo Foundation for Medical Education and Research (MFMER) (2019). Disease and conditions. Retrieved from https://www.mayoclinic.org/diseases-conditions

McCarthy, D., Mueller, K., & Wrenn, J. (2009). Mayo Clinic: multidisciplinary teamwork, physician-led governance, and patient-centered culture drive world-class health care. New York: Commonwealth Fund.

Murray, T. L., Calhoun, M., & Philipsen, N. C. (2011). Privacy, confidentiality, HIPAA, and HITECH: implications for the health care practitioner. The Journal for Nurse Practitioners, 7(9), 747-752. Noseworthy, J. (2018). Why unlikely partnerships will spark the healthcare revolution. CNBC.com Retrieved from com/2018/02/27/mayo-clinic-uncommon-alliances-will-spur-health-care-revolution.html”>https://www.cnbc.com/2018/02/27/mayo-clinic-uncommon-alliances-will-spur-health-care-revolution.html

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