Financial Analysis and Budgeting- Mayo Clinic
Proposed Changes and Expected Outcomes Based on SWOT Analysis
Although the Mayo Clinic is well known for providing the best healthcare services to patients, some issues need to be addressed. The proposed changes, as per the recent SWOT analysis, include doctors’ welfare, technological infrastructures, a business model that prioritizes the interests of patients, and other strategies like the expansion of healthcare units and coming up with new means of raising finances for conducting healthcare research (Lowery, 2018). Mayo Clinic should develop a salary compensation plan to encourage doctors’ performance for enhanced patient healthcare services.
Well-developed infrastructure promotes research and innovation in any discipline. With Mayo Clinic, well-integrated communication systems will ease the sharing and transferring of information for research. Sharing ideas through well-established communication systems leads to innovation in the healthcare sector.
A well-established business model determines the success of an organization. Mayo Clinic’s business model should be patient-based. A business model that puts the interests of patients ahead of the organization’s interests. The clinic should have good healthcare facilities for patients. In addition, there should be special units for the old and newborn babies.
The expected outcomes from the proposed strategies include improved healthcare services to patients because of well-integrated communication systems from research and innovation and a determined and motivated workforce because of a good compensation plan for doctors’ salaries. Generally, there will be a resourceful, healthy organization to provide healthcare services for all units of patients.
Simple Budget
| ITEMS | COST ($) |
| Staff (Doctors, Nurses, Management, Subordinate Staff) | 899,000.00 |
| Space | 789,000.00 |
| Equipment | 59,000.00 |
| Education and Training | 8,400.00 |
| Research | 789,050.00 |
| Infrastructure | 69,000.00 |
| Total Cost | 2,613,450.00 |
Financial Data Overview
High percentages of resources are used for research ($789050). Research plays a vital role in an organization because it provides information used to run 90% of the activities. Through research, the company can know areas that need improvement (Clyde, 2018). Staffing is crucial in an organization. Employees run the day-to-day activities of an organization. For instance, $899000 of the resources has been allocated to cater to the employees’ salaries and benefits. Space and equipment are also essential in an organization, for they provide a favorable working environment. Lastly, well-integrated infrastructural facilities like good communication systems are sources of information for research and innovation. For that reason, $69000 of the resources has been allocated to develop an integrated infrastructural system.
Income Statement
| Item | Amount ($) | Amount ($) |
| INCOME | ||
| Services rendered | 1,903,350.00 | 1,903,350.00 |
| EXPENSES | ||
| Salaries and wages | 78,000.00 | |
| Telephone and internet | 5,600.00 | |
| Water and electricity | 4,500.00 | |
| Property rates | 3,600.00 | |
| Insurance | 5,960.00 | |
| Training | 3,600.00 | |
| Fuel | 5,860.00 | |
| Advertising | 5,622.00 | |
| Stationary | 850.00 | |
| Tax expenses | 4,588.00 | (118,180.00) |
| NET PROFIT | 1,785,170.00 |
Conclusion
The performance of an organization depends on a well-established business model, resource allocation for different sections, and a well-managed and motivated workforce. With Mayo Clinic, high profits ($1785170) for the year 2021 result from a business model that focuses on the interests of patients and the welfare of doctors. In addition, reduced expenses contribute to high profits in an organization.
References
All Answers Ltd. (November 2018). Swot Analysis of Health Care Organization Mayo Clinic Health Essay. Retrieved from https://nursinganswers.net/essays/swot-analysis-of-health-care-organization-mayo-clinic-health-essay.php?vref=1
Clyde, P., & Karnani, A. G. (2018). Note on the Governance of Nonprofit Organizations: Lessons from Mayo Clinic.
Wald, J. T., Lowery-Schrandt, S., Hayes, D. L., & Kotsenas, A. L. (2018). Mayo clinic care network: A collaborative health care model. Journal of the American College of Radiology, 15(1), 167-172.
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Question 
Business Plan Part 2: Financial Analysis and Budget for Mayo Clinic
This assignment aims to complete a financial analysis to develop a proposed budget for a selected strategic initiative.
Understanding the role of financial management in strategic planning is essential in formulating a business plan for a strategic initiative. Financial analysis involves considering the factors that directly affect the initiative, such as staffing, space, equipment, training, and education. Once this information is known, a budget can be proposed for the strategic initiative and included as part of the business plan.
Financial Analysis and Budgeting- Mayo Clinic
For this assignment, complete a financial analysis of your selected organization by reviewing current company financial data such as income statements, budgets, net revenue, profit/loss statements, etc. Use that information and research about key budget items such as average salaries, cost of benefits, space and equipment costs, etc. to formulate a proposed budget for your strategic initiative.
In 250-500 words, address the following in the form of an executive summary:
Briefly describe the proposed strategic initiative, including the proposed changes and expected outcomes, based on the SWOT analysis results.
Provide a simple budget for the strategic initiative. Include all relevant budget categories such as staffing (including salaries and benefits), space, equipment, training and education, and any other expenses related to the initiative. Create a table to efficiently present the key budget information.
Provide a financial data overview that summarizes what financial data you examined and a description of specific factors that informed each financial statement (net revenue, profit/loss, balance sheet, etc.).
Include at least one of the financial statements available from the selected organization (income statement, budgets, net revenue, profit/loss statements, etc.) as a figure or an appendix.
While APA style is not required for the body of this assignment, solid academic writing is expected, and documentation of sources should be presented using APA formatting guidelines, which can be found in the APA Style Guide located in the Student Success Center.
This assignment uses a rubric. Review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.
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