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.