February 16, 2010
Mayo Clinic Responsible For $22 Billion In Economic Impact, Including $9.6 Billion In Minnesota
Study shows Mayo economic impact accounts for 144,000 US jobs
Data from a study conducted by the Battelle Memorial Institute shows Mayo Clinic is responsible for $22 billion in economic impact nationwide, including $9.6 billion in Minnesota. The $9.6 billion impact in Minnesota is larger than that of the hotel and lodging industry ($1.8 billion), motor vehicle manufacturing ($3.9 billion) or professional sports ($717 million).In terms of job creation, Mayo Clinic employs more than 57,000 people, including 37,000 in Minnesota, and creates an additional 94,000 full-time jobs through its business expenditures and the employment multiplier effect of these.
"The study confirms that Mayo Clinic is a national economic force, but what's particularly interesting is the size and scope of not only their clinical practice, but also research and educational activities," says Simon Tripp, senior director of the Battelle Technology Partnership Practice. "Mayo Clinic is particularly well positioned for continued leadership in the science and technology-driven 21st century economy; and the nation and Mayo Clinic home states and regions are likely to see significant further impacts.
"Mayo is a significant economic driver for our communities, states and nation," says John Noseworthy, M.D., Mayo Clinic president and CEO. "While economic impact is an important part of our story, what's more telling is the work that Mayo Clinic staff do every day to care for those in need. This study illustrates our strong commitment to patient care, education and research, which combine to ensure that we meet the needs of all our patients every day."
Major study findings include:
* Mayo's total annual economic impact on the United States economy is $22 billion.
* Every dollar spent by Mayo on operations, supplies and personnel generates an additional $2.05 for the overall national economy.
* Mayo directly and indirectly supports 144,468 jobs.
* Mayo generates nearly $1.9 billion in federal tax revenue and more than $1 billion in state and local tax revenue.
* Mayo invested $391 million of its own funds into research and education activities in 2008.
Mayo Clinic is an international leader in clinical care, medical research and medical/health education. From its beginnings as a small town medical practice, Mayo has become perhaps the most recognized brand in health care. Each year, Mayo Clinic is a destination for more than half a million patients from all 50 states and around the world. Additional diversified initiatives include clinical laboratory reference services, health publishing enterprises and other operations.
Battelle is the world's largest independent nonprofit research and development organization performing more than $5 billion in research and development annually. Battelle's Technology Partnership Practice is a leading provider of advanced economic and social impact assessment and economic development services. Battelle assessed both the "backward linkage" (expenditure-based direct, indirect and induced economic impacts) and "forward linkage" or functional impacts of Mayo Clinic and Mayo Health System operations. In each examination, specific attention was paid to fully assessing the impacts of Mayo Clinic's unique operational structure that includes three distinct but interrelated functions: health care services, research and education.
The impact of Mayo expenditures (backward linkage impacts) were quantified using regionally-specific IMPLAN input-output models. IMPLAN is one of the most widely used and respected models in the nation. Operational data (full-time equivalent employment, wage and benefit figures, and revenue and expense figures) were obtained from the Mayo Clinic for five operational groups. Battelle then developed regional IMPLAN models to measure direct, indirect and induced impacts in terms of employment, personal income, output and tax revenue measures for these operational groups.
The forward linkage impacts were developed using data provided by Mayo Clinic, as well as a variety of third-party data sources.
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