Mayo will spend $3.5B in capital improvements

The Mayo Clinic reported a robust uptick in earnings and plans to spend billions on capital projects over the next five years, reported the St. Paul Pioneer Press.

The Rochester, Minn.-based healthcare and research giant, which operates in five states, reported revenues of just under $8.5 billion in 2011, up about 7 percent from the $7.94 billion reported in 2010. It hired 2,000 new employees, a workforce increase of about 4 percent.

"We've been extraordinarily busy," Mayo Clinic President and CEO John Noseworthy said in the St. Paul Pioneer Press article. The CEO added that the clinic continues to see more medically complex patients.

The forecast for capital spending is "similar to historical levels prior to the U.S. economic decline in 2008," Mayo Clinic spokesman Nick Hanson said.

Mayo officials were not specific about all the planned outlays. Although about 60 percent was earmarked toward the replacement of equipment, three new centers for research on aspects of patient care, and new radiation treatment centers in Minnesota and Arizona, about 40 percent is expected to be put into what CFO Jeff Bolton described as "strategic investments." He declined to elaborate as to what those were.

To learn more:
- here's the Pioneer Press article
- read the MedCity article
- get the Mayo Clinic earnings data

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