Mayo Clinic Responsible for $1.5 Billion Economic Impact in Arizona and $22 Billion Nationwide

Wednesday, February 24, 2010

SCOTTSDALE, Ariz. — Mayo Clinic is responsible for $1.5 billion in economic impact in Arizona, according to data from a study conducted by the Battelle Memorial Institute. Mayo generates more than $747 million in direct economic output in Arizona, and this spending leads to more than $700 million in additional economic output.

In terms of job creation, Mayo Clinic overall employs more than 57,000 people. In Arizona, Mayo provides 4,651 full-time jobs and supports an additional 5,964 jobs, yielding employment for a total of more than 10,600 people.

The study shows that Mayo Clinic, as a three-site organization, (Arizona, Florida and Minnesota) is responsible for $22 billion in economic impact nationwide.

Mayo Clinic in Arizona generates $208 million in tax revenue for the state of Arizona.

In Minnesota, where Mayo Clinic was founded more than 100 years ago, the economic impact is $9.1 billion, eclipsing that of the Minnesota hotel and lodging industry, motor vehicle manufacturing and professional sports.

"The study confirms that Mayo Clinic is a national economic force, but what's particularly interesting is the size and scope of not only their clinical practice, but also research and educational activities," says Simon Tripp, senior director of the Battelle Technology Partnership Practice.

"Mayo Clinic is particularly well positioned for continued leadership in the science and technology-driven 21st century economy; and the nation and Mayo Clinic home states and regions are likely to see significant further impacts and benefits in the future."

"As we discuss important initiatives with national and state leaders, it's helpful to be able to tell the complete Mayo Clinic story," says Glenn Forbes, M.D, medical director of State and Local Government Affairs for Mayo Clinic. "Mayo is a significant economic driver for our communities, states and nation. At the same time, while economic impact is an important part of our story, what's more telling is the work that Mayo Clinic staff do every day to care for those in need. This study illustrates our commitment to patient care, education and research, which all ensure we meet the needs of our patients every day."

Major study findings include:

• Mayo's total overall economic impact on the U.S. economy is $22 billion.
• Every dollar spent by Mayo on operations, supplies and personnel generates an additional $2.05 for the overall national economy.
• Mayo directly and indirectly supports 144,468 jobs.
• Mayo generates nearly $1.9 billion in federal tax revenue and more than $1 billion in state and local tax revenue.
• Mayo invested $391 million of its own funds into research and education activities in 2008.

In Arizona, Mayo Clinic has a significant economic impact:

• Mayo is responsible for a total economic impact of $1.5 billion in the state.
• Mayo Clinic in Arizona provides 4,651 full-time jobs and supports an additional 5,964 jobs, yielding employment for a total of more than 10,600 people in Arizona.
• Mayo generates more than $208 million in tax revenue in Arizona.
• Mayo Clinic partners with other prestigious Arizona institutions, including Arizona State University, Phoenix Children's Hospital and the Translational Genomics Research Institute (TGen), to advance biomedical research within the state.

Mayo Clinic is an international leader in clinical care, medical research and medical/health education. From its beginnings as a small town medical practice, Mayo has become perhaps the most recognized brand in health care. Each year, Mayo Clinic is a destination for more than half a million patients from all 50 states and around the world. Additional diversified initiatives include clinical laboratory reference services, health publishing enterprises and other operations.

Study Methodology

Battelle is the world's largest independent nonprofit research and development organization performing more than $5 billion in research and development annually.

Battelle's Technology Partnership Practice is a leading provider of advanced economic and social impact assessment and economic development services. Battelle assessed both the "backward linkage" (expenditure-based direct, indirect and induced economic impacts) and "forward linkage" or functional impacts of Mayo Clinic and Mayo Health System operations. In each examination, specific attention was paid to fully assessing the impacts of Mayo Clinic's unique operational structure that includes three distinct but interrelated functions: health care services, research and education.

The impact of Mayo expenditures (backward linkage impacts) were quantified using regionally-specific IMPLAN input-output models. IMPLAN is one of the most widely used and respected models in the nation. Operational data (full-time equivalent employment, wage and benefit figures, and revenue and expense figures) were obtained from the Mayo Clinic for five operational groups. Battelle then developed regional IMPLAN models to measure direct, indirect, and induced impacts in terms of employment, personal income, output and tax revenue measures for these operational groups.

The forward linkage impacts were developed using data provided by Mayo Clinic, as well as a variety of third-party data sources.

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