Operating income at Rochester, Minn.-based Mayo Clinic reached $610.2 million in 2011, an 18.4 percent increase from $515.3 million in operating income in 2010.
President and CEO John Noseworthy, MD, Chief Administrative Officer Shirley Weis and CFO Jeff Bolton held a news conference today discussing Mayo's strategic and operational results for 2011. In addition to the rising income from operations, revenue rose 6.8 percent from 2010 to 2011. Revenue reached $8.48 billion last year, compared with $7.94 billion in 2010. Figures regarding net income and investment gains or losses were not disclosed.
"As a humanitarian not-for-profit organization, Mayo Clinic is not in the business of making money for money's sake," Mayo CFO Jeff Bolton said. "All earnings are reinvested into programs and initiatives that are aimed at advancing our mission."
Some of those programs and capital projects will be coming in the not-so-distant future. This year, Mayo will launch $600 million in capital projects, and over the next five years, it expects to spend $700 million per year.
Mr. Bolton said about 60 percent of the capital expenditures will go toward the renewal and replacement of current facilities and programs, while 40 percent will be directed toward "strategic investments and new projects."
Last year, Mayo began construction on two proton beam therapy facilities, which are experimental cancer treatment centers that are designed to more precisely target cancer cells while avoiding healthy tissue — and one of Mayo's most highly publicized capital projects. Some critics have said the proton beam therapy's clinical benefits are unproven and too costly, but this past January, Dr. Noseworthy defended the investments, saying the proton beam therapy facility construction was only "motivated by the best interests of our patients, not 'profit' or competitiveness."
Ms. Weis added in the news conference that the proton therapy projects are "not about making money. This is about meeting the needs of our patients."
Other financial figures from 2011 include $318 million in donations and gifts from benefactors, $1.2 billion in total community benefits and an estimated $22 billion economic impact throughout the United States. Mr. Bolton added that Mayo secured the employee pension program last year by contributing $200 million from its earnings toward the pension trust fund.
President and CEO John Noseworthy, MD, Chief Administrative Officer Shirley Weis and CFO Jeff Bolton held a news conference today discussing Mayo's strategic and operational results for 2011. In addition to the rising income from operations, revenue rose 6.8 percent from 2010 to 2011. Revenue reached $8.48 billion last year, compared with $7.94 billion in 2010. Figures regarding net income and investment gains or losses were not disclosed.
"As a humanitarian not-for-profit organization, Mayo Clinic is not in the business of making money for money's sake," Mayo CFO Jeff Bolton said. "All earnings are reinvested into programs and initiatives that are aimed at advancing our mission."
Some of those programs and capital projects will be coming in the not-so-distant future. This year, Mayo will launch $600 million in capital projects, and over the next five years, it expects to spend $700 million per year.
Mr. Bolton said about 60 percent of the capital expenditures will go toward the renewal and replacement of current facilities and programs, while 40 percent will be directed toward "strategic investments and new projects."
Last year, Mayo began construction on two proton beam therapy facilities, which are experimental cancer treatment centers that are designed to more precisely target cancer cells while avoiding healthy tissue — and one of Mayo's most highly publicized capital projects. Some critics have said the proton beam therapy's clinical benefits are unproven and too costly, but this past January, Dr. Noseworthy defended the investments, saying the proton beam therapy facility construction was only "motivated by the best interests of our patients, not 'profit' or competitiveness."
Ms. Weis added in the news conference that the proton therapy projects are "not about making money. This is about meeting the needs of our patients."
Other financial figures from 2011 include $318 million in donations and gifts from benefactors, $1.2 billion in total community benefits and an estimated $22 billion economic impact throughout the United States. Mr. Bolton added that Mayo secured the employee pension program last year by contributing $200 million from its earnings toward the pension trust fund.
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