Mayo Clinic Seeks Private, Public Funds for $6B Initiative
Mayo Clinic on Wednesday unveiled an ambitious 20-year, $6 billion initiative that it says will “secure Minnesota’s status as a global medical destination center now and in the future.”
Through the effort, dubbed Destination Medical Center, Mayo will invest roughly $3.5 billion to expand its facilities and services. Those capital investments will fund improvements at Mayo facilities in Minnesota and elsewhere, such as new proton beam therapy facilities, at which patients receive cancer treatment, according to spokesman Karl Oestreich.
But Mayo’s plan also seeks a considerable amount of public and private support. The organization is calling for an estimated $2.1 billion in “additional leveraged private investment.” It said that patients and employees have expressed a desire for new privately owned lodging options, hospitality venues, and retailers in Rochester.
Mayo research has indicated that the $2.1 billion in private investments is “obtainable,” and a “broad coalition” of business and community leaders has shown support for the plan, according to Oestreich.
Mayo also seeks $585 million in public funding as it aims to boost economic development in Rochester and create a more vibrant city surrounding the Mayo campus. Based on Mayo’s financing plan, which will be submitted to the Minnesota Legislature for consideration, a portion of the public funds would come from Rochester’s city tax revenues, but the state portion would exceed $500 million and be secured by a state appropriation bond.
“This is about making sure the community stays up to speed with its amenities, transportation, hospitality,” and other offerings, Oestreich said.
Mayo claims that its plans would lead to the creation of 35,000 to 45,000 new local jobs, generate more than $3 billion in new tax revenue, and result in a total economic impact in Minnesota of more than $45 billion. Mayo, which has more than 32,000 employees in Minnesota, is the state’s largest private employer.
President and CEO John Noseworthy said in a statement that the organization is evaluating plans for expansion outside of Minnesota, but “we believe Rochester can and should remain Mayo’s global headquarters and a premier destination for medical care well into the future, assuming we can attract the additional private business investments and finance the necessary public infrastructure needed to support an expansion of this scale.”
Mayo said that it has been working on the proposal for three years, and its top officials announced their plans on Wednesday alongside Governor Mark Dayton. When announcing the plan, Noseworthy said that the proposal has bipartisan support and that for every $1 in public financing, the project would leverage $10 in private investment, according to a report by the Star Tribune.
“This bold economic development initiative is driven on the proof of growth in the private sector and not the promise of growth,” Noseworthy said in a statement. “Ten years from now, there will emerge just a few medical centers with the reputation for health care excellence and patient-focused outcomes that will attract patients from all over the world to their flagship medical center. Mayo Clinic not only intends to protect its current status as one of the world’s premier medical institutions but to significantly expand our highly effective practice model and medical assets to be clearly recognized as a global destination medical center for decades to come.”