Mayo Clinic’s Financial Analysis

Mayo Clinic had total revenue amounting to $13.83 billion in 2019, which was cited as an increase in 9.7% from 2018. Out of the $13.82 billion revenue, $549 million, which was responsible for the rise, was donated by the “generous benefactors,” reported its second-quarter operating income of $154 million on Thursday, August 20, 2020 (Miller, 2020). It was half the operating income that Mayo reported last year in the same period (Miller, 2020). Reduction in revenue was attributed to the pandemic lockdowns that forced clinics to delay the non-essential tests. In this paper, I will prepare the proposed budget based on $124 million operating income to ensure that the results outlined in the SWOT analysis have been attained. 

The proposed budget for the strategic initiative this year would appear as follows. 

Table 1 : Mayo Clinic’s Annual Budget (Miller, 2020). 

As per the above annual budget, there will be less outflow than the budgeted amount, due to the efforts to reduce the cost of expenses during this period when the healthcare facilities are struggling with a severe financial crisis. The desired working income from the financial data presentation is about $700 million to ensure the future of the clinic is protected. Ultimately, the new technology to be embraced in the facility will boost hospital performance and heighten patient care. The idea of creating the budget is to come up with a modified outpatient initiative that would standardize patient care, greater accuracy, and room service. 

Reference 

Miller, C. (2020). “Mayo clinic turned profit q2 as many health providers lost big money.” Minneapolis/St. Paul Business Journal.