- By Karl W Oestreich
Mayo Clinic Reports Strong Performance in 2014, Extends Hope and Healing to Millions
ROCHESTER, Minn. — Mayo Clinic reports a strong 2014 performance, including providing direct care for more than 1.3 million people, contributions of $410 million to its pension plan as a commitment to employees, and plans for a $1.5 billion investment to fund information technology infrastructure.
“Whether viewed through the lens of quality, patient outcomes, research advances, operational performance or sharing our knowledge with the world — by all measures, we had an extraordinary year,” says John Noseworthy, M.D., president and CEO, Mayo Clinic. “That success allowed us to reinvest in our people, our infrastructure and our mission so we can better serve our patients.”
“As a nonprofit organization, it’s important for us to not only reinvest in our technology infrastructure, but also invest in our employees,” says Jeff Bolton, vice president, administration, Mayo Clinic. To that end, Mayo Clinic made an additional contribution of $190 million to its pension fund, bringing the total 2014 contribution to $410 million. This additional investment was necessary to ensure Mayo Clinic will meet its commitment to current and future retirees.
“Our financial performance gives us the flexibility to invest in new initiatives that will help our patients,” says Kedrick Adkins Jr., Mayo chief financial officer. These funds are committed to mission-advancing projects. The funding includes five areas of focus, Adkins says:
- Information technology infrastructure: $1.5 billion over multiple years to fund a new electronic health record and revenue cycle management system, network refresh and data transaction security upgrades.
- Employee pension plan: $410 million contribution in 2014. This includes an originally planned $220 million contribution and an additional $190 million contribution as a commitment to fully fund the pension plan for employees.
- Practice innovation: approximately $200 million in 2014 which includes funding of Mayo’s three hybrid centers — individualized medicine, regenerative medicine and the science of health care delivery — as well as Mayo Clinic practice priorities and information knowledge management activities.
- Education: $275 million in 2014 funding for educational activities.
- Research: $648 million in 2014 funding for research activities — $276 million from Mayo and $372 million from external resources.
Extending Mayo Clinic information, guidance and care to people everywhere
Besides providing in-person care for more than 1.3 million patients in 2014 through its destination centers and integrated community care model with Mayo Clinic Health System, Mayo continues to share its knowledge and provide virtual consultations to providers and patients through Mayo Clinic Care Network, its international network of member practices. With the addition of seven members in 2014, there are now 32 members of Mayo Clinic Care Network in the continental U.S., Puerto Rico and Mexico. More than 9 million patients and their care teams have access to Mayo Clinic knowledge, clinical protocols, e-Tumor Boards and consultations through Mayo’s expanding connected care platform.
Shaping the future of health care through research, education and thought leadership
Mayo Clinic’s transformative Centers for Individualized Medicine, Regenerative Medicine and the Science of Health Care Delivery, its multisite Cancer Center and medical research across all departments and sites, continue to keep Mayo at the leading edge of scientific discovery and innovations in patient care:
- Mayo Clinic experts demonstrated that oncolytic virus therapy — destroying cancer using a measles virus that infects and kills cancer cells but spares normal tissues — can be effective against multiple myeloma.
- A Mayo Clinic-developed test, Cologuard, allows for noninvasive testing for colon cancer with the same accuracy as invasive methods like colonoscopy. Mayo Clinic Ventures has licensed Cologuard for use by providers around the world, helping to improve patient care and contributing to the sustainability of Mayo’s research mission.
- Mayo Clinic is a recognized thought leader, sought in 2014 for input on health care-related topics during Aspen Ideas Festival, Davos World Economic Forum and numerous local, national and international media outlets.
Supporting local community vibrancy, economic development and health needs
- Mayo Clinic provided more than $461 million in care to people in need. This total includes more than $75 million in charity care and more than $385 million in unpaid portions of Medicaid and other indigent care programs in 2014.
- Mayo Clinic provided more than $1.3 billion to fund unpaid portions of Medicare and other senior programs in 2014.
- Mayo Clinic contributed $4 million in cash and in-kind support to local community needs, community wellness initiatives and outreach to the most vulnerable citizens.
- Mayo Clinic has reduced energy consumption within older facilities by 10 percent since 2010. New facilities are constructed with the highest standards of energy efficiency.
- The Destination Medical Center (DMC) initiative will be the catalyst to position Rochester as the world’s premier destination center for health and wellness, creating the ideal patient, visitor, and community member experience now and in the future.
- Mayo has already invested more than $8 million, in addition to thousands of hours of staff time, into the development of DMC during the past several years.
- In the first of many planned capital investments, Mayo Clinic Hospital on the Saint Marys campus is opening new surgical space and undertaking a significant expansion and renovation of the emergency department.
- The Mayo Family Clinic Southeast community practice facility has created more capacity for employee and community patients, and will serve as a site for developing innovations in team-based community care to be shared across all of Mayo Clinic.
- Mayo Clinic Sports Medicine Center expansion in Rochester and Minneapolis and the new Mayo Clinic Healthy Living Program in Rochester.
- The Mayo Clinic Proton Beam Therapy Program, housed in the Richard O. Jacobson building in downtown Rochester, will begin treating patients in June 2015. Mayo’s Proton Beam Therapy Program at its campus in Phoenix, Arizona will begin treating patients in the spring of 2016.
“Proton beam therapy will benefit patients with tumors located next to sensitive, critical organs with potentially fewer severe side effects and complications, compared to other forms of radiation therapy. This is especially important for children with cancer,” says Sameer Keole, M.D., Radiation Oncology, who is the proton beam medical director in Arizona.
2014 Mayo Clinic Financial Highlights
Mayo also reported a solid 2014 financial performance as it works to strengthen its destination medical center practice and deliver expertise to patients and physicians in new ways.
- Mayo Clinic’s overall financial performance was favorable to plan in 2014 and achieved the highest operating margin since 1986.
- Despite Mayo’s strong operating performance, its net assets declined by $462 million due to declining interest rates affecting the organization’s pension liability.
- Mayo Clinic finished 2014 with $834 million in income from current activities — or net operating income, which translates to an operating margin of 8.5 percent and aligns with the clinic’s long-term objectives.
- Revenues grew by 4 percent to $9.8 billion; expenses grew by 1 percent to $8.9 billion.
- Benefactors, primarily grateful patients, contributed $288 million to fund Mayo Clinic programs in practice, education and research.
“As we look back at all the accomplishments in 2014, and the strong momentum we’ve built to advance our strategies in 2015 and beyond, I want to take this opportunity to thank every Mayo Clinic employee for making it all possible,” says Dr. Noseworthy. “We all share a deep and abiding commitment to do what is right for our patients and for each other. In the midst of great challenges and unprecedented change, the spirit of the clinic shines through in the compassion of our tremendous staff. It is a privilege to be part of the team that is writing the next chapter of Mayo Clinic’s story of hope and healing.”
Mayo Clinic Operational Performance in Selected Categories
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About Mayo Clinic
Mayo Clinic is a nonprofit organization committed to medical research and education, and providing expert, whole-person care to everyone who needs healing. For more information, visit http://www.mayoclinic.org/about-mayo-clinic or http://newsnetwork.mayoclinic.org/.
MEDIA CONTACT: Karl Oestreich, Mayo Clinic Public Affairs, 507-284-5005, firstname.lastname@example.org