• Hiring expectations for 2010? "Essentially flat," said Weis.
• What about the wage freeze of 2009? Thawing out with pay raises returning. "Market-based wage adjustments in the 4 percent range" is how Bolton characterized the increases.
• Look for capital spending on facilities to bounce back some in 2010. In 2009, Mayo spent about $369 million on capital spending on buildings and such in 2009. Bolton says previously that number was in the $500 million to $600 million range. He says capital spending will gradually return to that level over the next few years.
Early version of today's article:
After cutting costs and streamlining operations to recover from a
break-even 2008, Mayo Clinic officials this morning announced the
efforts had succeeded, with a 2009 income of $333 million.
Revenues increased by 5 percent, while expenses climbed by 0.4 percent.
Mayo Clinic's financial report, released Thursday morning, showed total
revenue was $7.58 billion in 2009, up by about $360 million from 2008.
Staff reductions of about 1,000 employees primarily through attrition, as
well as a variety of other cost-cutting measures, resulted in expenses
rising just $27 million to $7.25 billion.
Mayo Clinic had 55,930 employees at all of its campuses in 2009. That's
down from 56,964 in 2008. Staff numbers in the Midwest, including
Rochester, declined by 596 employees from 2008 to 2009, to 46,263.
Mayo Clinic officials said Thursday that they were pleased with the
4.4-percent profit margin in 2009. They lauded staff for streamlining
operations and being innovative.
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Noted national health care economic expert Jeffrey C. Bauer, of ACS
Healthcare Solutions in Chicago, said this morning that the report
shows that Mayo followed "the clear financial prescription" that was
issued last year.
"I think Mayo, as always, has maintained its position as an exemplary
health care delivery system in the United States by succeeding at doing
what everyone said had to be done a year ago," Bauer said.
Mayo successfully reduced its health-care production costs at a time when doing that is a national concern, he said.
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