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Mayo Clinic Case Study

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Another model of an integrated healthcare organization involves a multispecialty group practice that does not include a health plan. The Mayo Clinic started in Rochester, Minnesota, in 1887, serves as an excellent example of this model (Shi and Singh, 2008). The Mayo Clinic has salary-based compensation, a physician-led governance structure, shared electronic medical records across inpatient and outpatient services, and the use of information technology. These characteristics, along with a private, not-for-profit status and full integration of the hospital and clinic, are key attributes that have contributed to its growth and success. The Mayo Clinic annually serves 520,000 individual patients globally with a staff of 3,400 clinic physicians and scientists (McCarthy, 2009). It includes four owned hospitals and outpatient facilities on three major campuses. In 1992, the Mayo Health System was created in partnership with the …show more content…
Under this model are physician-hospital organizations and management service organizations. MSO services emerged to supply management expertise, administrative tools, and information technology to physicians who realized they needed this information to survive in the intricate healthcare environment. MSO services are mainly needed by smaller group practices because it is more practical and economical than employing full-time managers (Shi and Singh, 2008). A physician-hospital organization forms a legal alliance between a hospital and local physicians. If a physician-hospital organization is large enough, it can also contract its services directly to employers, while a third-party administrator processes its claims (Shi and Singh, 2008). Other integration structures under this model of integrated healthcare systems include group practices without walls and individual practice associations (Integrated Healthcare,

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