2016 net operating income:
Biggest moves made:
Increased telehealth efforts, consolidated facilities and developed evidence-driven insights in push toward value-based payment models.
"To inspire hope and contribute to health and well-being by providing the best care to every patient through integrated clinical practice, education and research."
Providers throughout the country are dealing with revenue challenges and an industry in flux. The Mayo Clinic this year has shown how to deal with these issues through increased efforts in value-based care, telemedicine technologies and consolidation where necessary.
We’re not the only ones to recognize what Mayo has been doing. The Rochester, Minnesota-based health system was named hospital of the year by U.S. News and World Report for the second time in a row earlier this year. It was also nationally ranked in 15 adult specialties and nine children’s specialties. Ben Harder, managing editor and chief of health analysis at U.S. News, told Healthcare Dive the rankings are determined by data analysis of five years worth of administrative records from millions of hospitalizations.
The health system was not without controversy this year, though. Residents of Albert Lea, Minnesota, have been protesting a planned consolidation with another Mayo facility about 25 miles away. While the issue has drawn the attention of local officials and continued to rile up those in the affected communities, Mayo has been quick to address the concerns. Representatives from Mayo have talked to residents directly, shown up at community meetings and written about the consolidation in local newspapers.
Consolidation is a clear trend among healthcare provider groups, but communities losing services will be quick to resist. Mayo has demonstrated a method of listening to the concerns and laying out the reasons for the move, all while moving forward.
Mayo also continues to demonstrate how to use emerging technology in the area of telehealth. Mayo executives said earlier this year their system’s tele-neonatology program provided more than 200 consults in its first four years and helped reduce unnecessary transfers. The program was highly rated by community providers who used it for consults. Mayo also recently developed a first aid advice program for Amazon’s Alexa digital voice assistant. It’s not meant to be used for life-threatening emergencies, but can help guide people for basic first aid and assessment.
The health system has also continued to live up to its reputation as a leader in the movement toward value-based care and payment models that promote it.
By the numbers
- U.S. News & World Report's No. 1 hospital for 2016 and 2017
- Has 3,120 full-time research personnel
- Provided $629.7M in uncompensated care in 2016
- Employs more than 63,000 people
- One of DiversityInc's Top 12 Hospitals and Health Systems for the past six years
Dr. Wyatt Decker, CEO of Mayo Clinic in Arizona, said at the recent U.S. News & World Report Healthcare of Tomorrow conference that Mayo has analyzed what creates outliers in cost and outcome for frequent procedures. A person recovering from hip replacement surgery, for example, has a better outcome if there is a caregiver at home.
These evidence-driven insights can be used to improve value-based care models, he said. “We’re proposing to [the Department of] Health and Human Services and private insurers that we analyze that, and when we create bundles we build in those important nuances that we know in advance are likely to create a higher cost of care.”
Mayo's abilities in adapting to changing healthcare settings, leveraging promising technology and proactively approaching payment models that focus on care quality showcase a model for other providers to follow.
In an industry struggling amid lowering reimbursement rates and reduced patient volumes, Mayo Clinic will continue to blaze a trail for adapting and surviving in the future.