2006 Mayo Clinic Financial Highlights

Friday, March 16, 2007

This is a summary of the 2006 financial performance for Mayo Clinic in Minnesota, Wisconsin, Iowa, Arizona and Florida. The figures include all entities unless otherwise noted.

Income from Current Activities (ICA), the best measure of Mayo's financial performance, was $117 million, a margin of 1.9 percent.

* Income from patient care was down slightly — $279 million in 2006 compared to $307 million in 2005.

* Mayo Health System (MHS) — a family of clinics, hospitals and other health care facilities serving 64 communities in Minnesota, Iowa and Wisconsin — continued to grow. MHS operations comprise 27 percent of Mayo Clinic's patient care revenue.

* Patient volumes grew 2 - 3 percent across the system. (Mayo Clinic served more than 521,000 unique patients in 2006.)

* Total revenues grew by 8 percent, while expenses grew by nearly 10 percent. Expenses outpaced revenue, due in part to important investments in patient care and research activities including translational and cancer-related research. Expense management will be a focus in 2007.

* Diversification activities — including health information publishing enterprises, clinical laboratory reference services and technology commercialization — contributed $35 million. These funds provide support for education and research.

* Gifts from benefactors totaled $230 million.

* The financial markets made significant gains, with Mayo's portfolio returning about 18 percent. Mayo Clinic's investments increased in value by $569 million in 2006.

* External funding for research grew by 3 percent from $271 million to nearly $280 million. This reflects a flattening in federal funding for research. Meanwhile, Mayo Clinic and donor support for research increased from $130 million in 2005 to $168 million in 2006.

* Education expenditures increased to $186 million, $147 million of which is funded by Mayo Clinic.

* Mayo contributed $233 million to its employee pension plans to keep them strong and secure for the future.

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