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Newswise — ROCHESTER, Minn. -- Mayo Clinic today reported a solid 2012 financial performance as it works to provide high-quality care at lower cost, strengthen its destination medical center practice and deliver expertise to patients and physicians in new ways.
Mayo Clinic reported annual revenue of $8.8 billion for 2012. Mayo, a not-for-profit, has more than 61,000 employees and treats more than 1 million patients each year from roughly 135 countries. As part of our operational plan in 2012, Mayo Clinic expected expenses to grow faster than revenue; expenses rose 9.6 percent, to $8.4 billion.
“For nearly 150 years, our employees have done everything possible to provide our patients with safer, better and more efficient health care,” says John Noseworthy, M.D., Mayo Clinic president and CEO. “Even in a challenging environment, our employees continue to deliver by putting patients first.”
Mayo’s 2012 accomplishments include growth of the Mayo Clinic Care Network. Care Network members have access to Mayo knowledge and physicians to help them care for their patients closer to home whenever possible. Physician collaboration also helps enhance health care in member communities. The network spans 10 states, from Arizona and Montana, through the Midwest, to New Hampshire and south to Florida and the Caribbean. Mayo Clinic now reaches more than 3.3 million patients through the Care Network.
Mayo Clinic is developing mobile applications to connect physicians with patients wherever they are. For physicians, Mayo Medical Laboratories introduced an app that enables physicians to search for tests by disease, test name or test ID and provides direct access to educational resources such as videos, articles and testing algorithms. For patients, Mayo Clinic introduced Anxiety Coach and Mayo Clinic on Pregnancy. Anxiety Coach, available for Apple iPhones, iPads and iPod Touch users, is a tool that helps people cope with a variety of fears and worries, from extreme shyness to obsessions and compulsions. Mayo Clinic on Pregnancy, available for Windows 8 users, is a guide to pregnancy, childbirth, and a baby's first three months. The app leverages the medical and lifestyle expertise of Mayo experts in obstetrics and gynecology, genetics, nutrition, midwifery and lactation.
“Mayo Clinic is redesigning its practice to create higher quality of care at lower costs,” Dr. Noseworthy says. Examples include:
* Expanding the number of mid-level providers such as nurse practitioners and physician’s assistants in our practice. These highly-trained professionals can deliver care in a variety of settings, freeing up physicians for the most complex cases. * Integrating care between Mayo Clinic Health System and Mayo Clinic so the right care is delivered in the appropriate setting.* Redesigning hospital, outpatient and eHealth platforms; implementing best practices; better use of alternatives for established, stable patients.
Mayo Clinic is accelerating the transition of research discoveries to patient care. For example, Mayo Clinic was the first facility approved by the U.S. Food and Drug Administration to produce and administer Choline C11 injections. C11 helps detect recurrent prostate cancer earlier, giving those patients more immediate access to new individualized and targeted treatments.
A remote monitoring system developed at Mayo Clinic also received FDA clearance last year. BodyGuardian Remote Monitoring System allows physicians to monitor key biometrics of patients as they go about their daily lives. A small body sensor attaches to the patient’s chest and collects information, including ECG, heart rate, respiration rate, and activity level, then transmits it to his or her health care provider via mobile phone technology. The monitoring system will be available to physicians in 2013.
Shirley Weis, Mayo Clinic vice president and chief administrative officer, says Mayo’s strong performance allows it to invest in initiatives that will transform health care, ensure Mayo’s future and drive economic growth in the states where it operates. Weis highlighted these accomplishments in 2012:
* Mayo Clinic cared for more than 1 million patients at its campuses in Minnesota, Florida, Arizona and Mayo Clinic Health System, a network of clinics, hospitals and health care facilities serving more than 70 communities in Minnesota, Iowa, Wisconsin and Georgia.
* Mayo Clinic in Arizona celebrated its 25th anniversary. Mayo in Arizona now spans two campuses, comprising more than 400 acres. Mayo added two research buildings on the Scottsdale campus and, on the Phoenix campus, a 244-bed hospital, a specialty clinic, housing for transplant and cancer patients and leased space for a child care center, a hospice and a hotel. Off-site family medicine practices were added in Scottsdale and Glendale, Ariz.
* Mayo Clinic in Florida recently completed its 2,500th liver transplant. Since its inception in 1998, the Florida program has produced some of the highest volumes of liver transplants, lowest median wait times and one of the highest survival rates in the country -- all while providing the best care to those living with chronic and acute liver diseases.
* Mayo Clinic Health System celebrated its 20th anniversary. What began as a partnership between Mayo Clinic and a six-physician practice in Decorah, Iowa, has grown into a health care delivery system with more than 70 locations across Georgia, Iowa, Minnesota and Wisconsin.
* Fortune magazine named Mayo Clinic one of the “100 Best Companies to Work For” in 2012. This marks Mayo’s 10th consecutive year on the magazine’s annual compilation of companies rate highly by employees.
While Mayo Clinic reports another solid year, health care organizations are facing significant challenges, and change is accelerating faster than anticipated.
“We are not immune to external pressures, but Mayo is making progress toward its vision of strengthening its destination medical center practice,” Dr. Noseworthy says. “It will require deliberate focus and the ability to change as we position ourselves for the future.” Some key 2012 financial highlights:
* Mayo Clinic finished 2012 with $395 million in income from current activities -- or net operating income -- which translates to an operating margin of 4.5 percent and aligns with the clinic’s long-term objectives. Mayo Clinic targets a 4 to 6 percent operating margin to support its research and education activities, fund salary increases, invest in the pension fund, and provide a source of capital for investing in the future.
* Mayo Clinic’s portfolio realized an annualized investment return of 12.1 percent, which is above benchmarks. A portion of this return supports research, education and operations -- $155 million in 2012.
* Mayo Clinic contributed $484 million to its pension plan in 2012. Securing Mayo Clinic’s pension fund is a priority and underscores Mayo’s commitment to its staff. The pension fund is 84 percent funded.
* Benefactors, primarily grateful patients, contributed $245 million to fund Mayo Clinic programs in practice, education and research.
* In 2012, the total budget for education and research programs was $885 million; Mayo Clinic invested nearly $452 million of that total.
* Mayo research programs received nearly $385 million in external funding.* Revenue grew by 6.3 percent to $8.8 billion. * As part of our operational plan in 2012, Mayo Clinic expected expenses to grow faster than revenue; expenses rose 9.6 percent, to $8.4 billion.
For Operational Performance figures, please see: http://www.mayoclinic.org/news2013-rst/7346.html
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About Mayo ClinicMayo Clinic is a nonprofit worldwide leader in medical care, research and education for people from all walks of life. For more information, visit www.mayoclinic.com and www.mayoclinic.org/news