For Mayo Clinic, 2014 was a very good year.
The hospital and clinic system based in Rochester, Minn., saw its operating income increase by more than one-third last year, which was its strongest performance in more than 25 years.
Mayo released its 2014 financial statement Tuesday. Here are a few pertinent numbers:
- 2014 operating revenue: $9.76 billion, up 4 percent from 2013
- 2014 operating income: $834.3 million, up 36 percent from 2013
- 2014 operating margin: 8.5 percent, highest since 1986
Mayo cared for about 1.3 million patients in 2014.
"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," said Dr. John Noseworthy, Mayo's president and CEO, in a news release. "That success allowed us to reinvest in our people, our infrastructure and our mission so we can better serve our patients."
The additional income is being put toward a $1.5 billion upgrade to Mayo's information technology systems, which will include new electronic record-keeping, clinic officials said. Mayo also contributed $410 million toward its employee pension plan in 2014, and made other investments in its research and education efforts.
Mayo's main hospital and clinic is in Rochester. It also has facilities throughout southern Minnesota and parts of Iowa and Wisconsin, as well as hospitals in Arizona, Florida and Georgia.
Mayo's performance is particularly strong considering the pressure that many health care providers are facing from insurance companies and government programs to reduce their costs.
Analyst Dan Steingart with Moody’s Investors Service told the Star Tribune Mayo is bucking that trend in part because of its national and international reputation, which attracts more patients.
"The effect of that demand, which tends to be for high-accuity, high-reimbursed services, is something that differentiates them from the rest of the industry," Steingart said, according to the Star Tribune.
In July, Mayo was ranked the No. 1 hospital in the country by U.S. News and World Report. It was the first time it was given that distinction.
Mayo is hoping to attract more international clients, especially from China. In January it launched a collaboration with Hong Kong-based Medisun Holdings in January to provide "health care consulting services," which is expected to increase the number of referrals from China to Minnesota.
Mayo is also the main driver behind the $5 billion Destination Medical Center plan in Rochester. Mayo plans to spend $3 billion on an expansion of its main campus, and expects that will leverage another $2 billion in private investments.
In 2013, the Legislature and Gov. Mark Dayton signed off on more than $500 million in state money for infrastructure improvements in the area.
Mayo is one of Minnesota's largest employers, with a workforce of about 40,000 in the state. Its employment overall is nearly 60,000 people.