Mayo Clinic's Destination Medical Center Full Proposal

Posted at: 01/30/2013 2:09 PM
Updated at: 01/31/2013 11:52 AM

ROCHESTER, Minn. — Mayo Clinic today announced Destination Medical Center (DMC), a $5 billion economic development initiative to secure Minnesota's status as a global medical destination center now and in the future. The goal of DMC is to ensure that Minnesota and Mayo Clinic are destinations for medical care in the coming decades. This initiative is the culmination of a three-year study by Mayo Clinic to chart its future business strategy in an increasingly complex, competitive and global business environment.

The DMC public and private investment is estimated to include approximately $3.5 billion in new Mayo-financed capital investments on its Rochester campus over the next 20 years, combined with an estimated $2.1 billion in additional leveraged private investment. The multiyear Mayo Clinic DMC investment, combined with additional private investments required to support this global destination vision, is projected to create 35,000 to 45,000 new jobs in Rochester and Minnesota and over $3 billion in new tax revenues in Minnesota. This represents the largest economic development initiative in Minnesota and one of the largest in the United States.

"This bold economic development initiative is driven on the proof of growth in the private sector and not the promise of growth," says John Noseworthy, M.D., Mayo Clinic president and CEO. "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."

As Minnesota's largest private employer with more than 32,000 employees in the state, Mayo Clinic has long been synonymous with the city, Rochester, where the clinic is located and headquartered. But other U.S. cities and foreign countries often encourage Mayo Clinic to consider expansions outside of Minnesota. "Various medical centers are evaluating major cities in the United States, Europe, Asia and the Middle East as possible locations for significant expansion," says Dr. Noseworthy.

"While Mayo Clinic is also evaluating plans for additional expansion outside Minnesota in future years, 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," he says.

In addition to the Mayo-financed and non-Mayo private investments, it is anticipated that a total of $585 million in public infrastructure costs will be required to support the DMC expansion over the 20-year investment timeline, bringing the total DMC investment in Minnesota to over $5 billion. Current projected benefits to Minnesota from Mayo Clinic and related DMC expansion include (over 20 years):

Major elements of the proposed DMC initiative fall into three categories:

Mayo Clinic has been working with public finance and development experts and various public officials to craft a workable plan to finance the public infrastructure costs. While Mayo Clinic will privately finance all of its facilities expansion, it became clear that the city of Rochester does not have the capacity to finance public costs exceeding $500 million, nor will a private developer pay for public infrastructure. A DMC working group has developed an innovative public finance plan that involves the following elements:

The DMC financing plan will be submitted to the 2013 Minnesota Legislature for consideration.