Assessment One- Target Organization Identification

 

 

 

 

 

 

 

Assessment One- Target Organization Identification

Student’s Name

Institution Affiliation

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Assessment One- Target Organization Identification

This paper will identify three healthcare organizations within the country and narrow down to one organization that is considered the best in managing its finances and having good strategic planning. The following key areas will be given priority;

1. Key Trends in Healthcare

According to Santilli &Vogenberg (2015), some key trends in modern healthcare include cybersecurity, industry consolidation, and new entrants aimed at establishing value-based care, and the problem of staffing shortages. Cybersecurity has been the most recent, with vital data belonging to an organization and patients being stolen and used by hackers for their selfish purposes. Under-staffing is also common, with the number of patients increasing daily while healthcare providers decrease in value. Also, the country’s healthcare system is moving towards value-based care by applying patient-centered care approaches to improve service delivery.

2. Potential Target Organizations

For this assessment, my three potential target organizations for analyzing their executive leadership and sources of financial information include Mayo Clinic, Cleveland, and John Hopkins Clinic.

1. Mayo Clinic’s Financial Structure

Mayo is a healthcare organization operating in the healthcare industry. It is a non-profit organization that invests its net operating income back into its programs to help realize its objectives. Key executive leaders for mayo include the following;

 

1. Gianrico Farrugia, M.D -President and CEO
2. Daniel Berry- Board chair

• Jeffrey Bolton- secretary

1. Bobbie Gostout- M.D
2. Richard Gray-member
3. Key website-www.mayoclinic.org

• Target population- the clinic targets to provide healthcare services to the most mature female market.
• Calculate two key ratios for each financial statement balance sheet, statement of cash flows and income statement
• Return on equity = profit after tax /net worth

Currently, Mayo Clinic’s net worth=$17.305billion (2018)

Profit after tax in 2018= $706million

Return on equity= 17.305/706= 24:5; a higher ratio indicates how good the company is.

• Return on capital employed = net operating profit/ capital employedx100

Mayo’s net operating profit=$154million

Mayo’s capital employed=$12.6billion

Therefore, return on capital employed for 2018= 154/12.6×100=$ 12: 22

The high ratio shows how better the Mayo clinic is (Ross, 2020).

1. Cleveland Clinic financial structure
2. Type of organization – healthcare organization operating in the healthcare industry
3. Tax status– non-profit organization integrating teaching and clinical treatment of patients

• Key executive leaders;

Tomislav Mihajlovic-M. D and CEO

Josette Beran- Chief Strategy officer

Adrienne Boissy-chief patient experience officer

Chris Connell-chief design officer

Mathew Donnelly-executive director

1. Key website-ww.clevelandclinic.org
2. Target population-the clinic targets elderly populations across the Ohio state
3. Calculations

Return on equity=profit after tax/net worth

Profit after tax= $17.8 billion

Net worth=$8.4billion

Hence, return on equity= 17.8/8.4=21:19

The higher ratio indicates how better the organization is (Stoller et al., 2017)

1. John Hopkins Clinic structure

Type of organization-a healthcare organization operating in the healthcare industry

Tax status– non-profit making organization

Key executive leaders

Redonda Miller- president and CEO

Jill Kearney- chief operating officer

Laurent Moreau- vice president

Karen Frankson-M. D director

Mohan Chellappa-M. D and executive vice president for global ventures

Key website-www.hopkinsmedicine.org

Target population-

Calculations – the facility offers services in dental, inpatient, and outpatient facilities.

Calculations

Return on equity-profit after tax/net worth

Profit after tax=$45.7million

Net worth=$7.7billion

Return on equity= 45.7/7.7=19:35

The higher ratio indicates how better the clinic is (Kwiterovich, 2012)

For the last three financial years, an industry analysis indicates that Mayo Clinic is in an advantageous position by having a higher ratio of its return on equity calculation.

3. Summary of General Financial Health for The Three Healthcare Organizations

From the analysis of the various financial statements’ calculations presented above, it has been approved that Mayo Clinic has a higher percentage in terms of return on equity. This implies that the clinic makes enough profit after paying tax to the federal government. The profit is enough to keep it running by facilitating its daily operational, administrative activities and paying nearly 65,000 employees it owns.

Hence, my selected and preferred healthcare organization is Mayo clinic due to its good financial position and the ability to locate its executives.

4. Target Organization Selection and Identification

After a careful analysis of the three healthcare organizations, I have concluded that Mayo Clinic remains the best healthcare organization compared to the three selected facilities. This has been necessitated by the fact that the clinic offers both inpatient and outpatient services for patients suffering from various diseases. The organization also manages its finances well and supports a large pool of employees amounting to 65,000 (Berry, 2008).  Mayo has a higher ratio of return on equity, meaning it can sufficiently afford all its administrative costs for a year and pay all its employees on time from the funds generated and given by the government and other donors.

The clinic has been in operation for more than 130 years since its establishment in September 1889 in Rochester by William Worrall Mayo, the founder. The official name was given to the clinic in 1914, and its currently owned by Gianrico Farrugia, the president, and CEO. The clinic’s target population is mature females who have various health complications. The clinic offers dental, surgery, cancer, maternity, and general treatment services to this population and other patients seeking its services (Berry, 2008).

Mayo Clinic’s mission is to inspire hope and promote health by offering integrated clinical education, research, and practice. The clinic has a vision of transforming the medical profession to connect and cure as the global authority in the care of serious and complex diseases such as cancer. Mayo’s organization’s goals include the provision of quality healthcare services to all its patients who seek their services. The clinic values respect, integrity, compassion, healing, teamwork, innovation, and excellence, among other qualities (Widmer et al., 2016).

The clinic’s strategic plan relies on providing quantitative data from the field that forms the basis for its decision-making organs. The facility relies on researchers send to the field to collect data on disease trends, drug manufacture, and general treatment procedures in the evolving world. Mayo Clinic maintains a corporate structure of organizations and has a single governing body with a trustee board. The information provided affects this organization’s asset-building because it helps it realize its set objectives and goals, which involve the provision of quality healthcare to its clients (Crow et al., 2012).

Currently, I do not have access to the organization’s decision-makers, such as the CEO and the board chair. Arrangements can be sought to reach them in person for an interview after making an appointment. I want to work with this organization due to its good management skills and expertise in research, teaching, and compassionate patient handling. It is my pleasure to serve the elderly, mostly women. The clinic has also made good use of technology by using state-of-the-art machines to diagnose and treat various diseases. Some machines include cancer screening equipment, radiology machines, x-rays, scanners, among others (Deschamps, 2016). The clinic competes favorably in the market by focusing on cancer treatment through the use of technology. The facility receives most cancer patients in the country.

 

 

 

 

 

References

Berry, L. L., & Seltman, K. D. (2008). Management lessons from mayo clinic (p. 4). McGraw-Hill Professional Publishing.

Crow, H., Gage, H., Hampson, S., Hart, J., Kimber, A., Storey, L., & Thomas, H. (2012). Measurement of satisfaction with health care: Implications for practice from a systematic review of the literature. Health technology assessment.

Deschamps, C., Rinfret, N., Lagacé, M. C., & Privé, C. (2016). Transformational leadership and change: How leaders influence their followers’ motivation through organizational justice. Journal of Healthcare Management, 61(3), 194-213.

Kwiterovich, P. O. (2012). The John Hopkins Textbook of Dyslipidemia. Lippincott Williams & Wilkins.

ROSS, M. D., & MARTINEZ, JR, O. N. (2020). ThE///6///PUBlIC PSyChIATRIST ASA lEADER. Public and Community Psychiatry, 127.

Santilli, J., & Vogenberg, F. R. (2015). Key strategic trends that impact healthcare decision-making and stakeholder roles in the new marketplace. American health & drug benefits, 8(1), 15.

Stoller, J. K., Berkowitz, E., & Bailin, P. L. (2017). Physician management and leadership education at the Cleveland Clinic Foundation: program impact and experience over 14 years. The Journal of medical practice management: MPM, 22(4), 237.

Widmer, R. J., Engler, N. B., Geske, J. B., Klarich, K. W., & Timimi, F. K. (2016). An academic healthcare Twitter account: the Mayo Clinic experience. Cyberpsychology, Behavior, and Social Networking, 19(6), 360-366.