Dear Answer Man: So, a lot of downtown is in upheaval due to Mayo Clinic’s construction. My question: Where did the
come from for Mayo’s bold adventure? — Michael and Money.
Dear Michael,
So, when I need to have the old ticker checked and make sure my blood hasn’t turned either into gravy or maple syrup, I head to my friendly, local Mayo Clinic doctor, who promptly tells me to lose 20 pounds and lay off the cookies. (Answer Man doesn’t smoke, so I never have to have that talk.)
When all is said and done, Mayo Clinic charge me a few bucks for the pleasure.
Unless you’re an “Olmsted Medical” person, I’m guessing Mayo Clinic does the same for you.
But for many in Rochester — plus people far and wide with bigger medical problems than a love of cookies and an occasional bourbon — Mayo Clinic is the go-to health care institution in the world.
What does this mean in dollars and cents? Well, according to the estimable Jeff Kiger, just in 2024,
Mayo Clinic reported a record-setting operating margin
(don’t say “profit” since Mayo is mainly a not-for-profit enterprise), pocketing $1.3 billion.
And businesses, Kiger noted from Mayo’s annual financial report, is booming. Clinic visits were up. Hospital admissions were up. Donations were up. Surgical cases … guess the direction. Up.
Now, before we go further, let’s talk a bit about two separate but complementary efforts that are redefining downtown Rochester:
and
“Bold. Forward. Unbound. In Rochester.”
Here’s a quick explanation from the fine folks at DMC: “Destination Medical Center is a public–private, 20-year economic development initiative created by state legislation to support Rochester’s growth — investing in infrastructure, public spaces, and amenities that support Mayo Clinic and the community, while attracting new business, innovation, and investment. ‘Bold. Forward. Unbound. in Rochester’ is Mayo Clinic’s own plan to transform its campus and the future of care.”
Clear?
Sure, but where is all this money coming from?
Well, DMC has its own sources: The state — and to a lesser degree, Olmsted County and the city of Rochester — are contributing
$585 million over the 20 years of DMC.
The rest of the $5.6 billion investment will come from private funding, some of which would be Mayo Clinic, but much of which comes from other sources investing in downtown.
Meanwhile, Unbound is mostly money being spent by Mayo Clinic, with some coming from donors who are helping fund some of Mayo Clinic’s endeavors. Unbound plans include five new buildings that will be constructed in Rochester. Two of those are new clinical buildings. Enter the Watermans.
Mayo Clinic announced a “transformational gift” that goes toward the construction of the upcoming Bernard E. and Edith B. Waterman Building. How much did the Watermans give? Mayo did not say, but the Watermans have long been supporters of Mayo Clinic, according to a
story from the awesome Dené K. Dryden.
Answer Man would guess this donation is akin to
a company’s efforts to put its name on a football or baseball stadium.
It’s a big number.
In the end, Mayo Clinic isn’t letting Answer Man look at their books, but it’s clear that the $5 billion for Unbound is money from Mayo’s own pockets and/or the deep pockets of some benefactors. And thanks to my love of cookies and an occasional need to see my doctor, those funds — at least in some tiny way — come from Answer Man … and from you.
Your queries should be “unbound.” Send questions to Answer Man at
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