Skip to main content
Updated:
Original:

Mayo Clinic has a banner year; income up 36 percent in 2014

Author:

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.

Next Up

Eric Kendricks

Vikings downgrade Eric Kendricks to out against Lions

The Vikings have also activated Michael Pierce from injured reserve.

u.s. attorney

Minnesotan sentenced after assaulting man with baseball bat

Marshall Wayne Boshey was sentenced to 30 months in prison followed by two years of supervised release.

Target store

Target's gift card discount is back, but for this weekend only

The fine print: for Target Circle members only (but membership is free).

Screen Shot 2020-06-15 at 7.11.05 AM

Minneapolis teen arrested in St. Cloud after fleeing police in stolen vehicle

The vehicle was stolen in a car-jacking in Minneapolis Thursday.

snow, blowing snow

Winter storm warnings issued with heavy snow set to slam MN

Parts of northern Minnesota could see more than a foot of snow, but there won't be much in the Twin Cities.

D'Angelo Russell

With KAT out, Timberwolves can't upset Nets

D'Angelo Russell stepped up but couldn't overcome Brooklyn's firepower.

Everson Griffen Vikings dot com

Everson Griffen confirms he has bipolar disorder

"I’ve been running from it a long time. I’m not ashamed of it anymore.”

Angela Renee Jones, St. Cloud murder suspect

St. Cloud suspect now charged in two local murder cases

Both murders happened within a day of each other in June.

st anthony 3 crop

Twin Cities police ask for help finding missing 16-year-old

Police say all her family and friends have been contacted, and none of them know where she is.

mpd suspect 12.3.21 - 1 - CROP

MPD releases photos of shooting suspect, asks for public's help

The man is wanted in connection with a fatal shooting that happened Wednesday evening.

Related