Question

Facilities and Capital Expenditures of Mayo Clinic:
Describe the facilities of Mayo Clinic. Are they newer or older? What have capital expenditures been over recent years of Mayo Clinic? What percentage of depreciation has been spent over the past three years? What are future capital expenditure plans of Mayo Clinic?

Answer 1

Mayo clinic is a health care which has a diverse inventory of facilities and real estate.The inventory includes clinics,hospitals,research facilities,education facilities,administrative,power plants,parking ramps,healthy living,senior housing and warehousing.

Mayoclinic was founded in the year 1992,it has a system that links with health care providers in local communities to offer patients a full spectrum of health care options,and has more than 100 medical services and specialities available throughout the system.

The Mayoclinics net operating income surged upto$232million last year.The strong financial report for 2017 also shows the Mayoclinics revenues last year climbed 9% to$12 billion while expenses rose almost $800million to just under $11.3billion.About 65% of Myoclinics expenses involved the cost of salaries and benefits for the organizational employees.Capital expenses last year hit$714million last year,which included new construction,remodelling,equipment,along with net security updates and costs associated with new EPIC medical records system

For the past three years ,Mayo" capital spending has been above $600 million.Mayo clinic saw its operating income fall from $526 million in 2015 to $475 million in 2016,reflecting increased costs associated with growing its workforce and providing un compensated care to patients in Medicaid programs.

In 2017 it announced its plans for future capital expenditure ,by investing it on facilkities and infrastructure.

Mayo Clinics Florida Campus:to add four floors for a total of fiveand the estimated expenditure will be around $70.5million,the completion is expected on 2019

Rochester :Three floors will be added,The $217 million project is expected to be completed over 5 years.

Mayoclinic Health system:plans to expand and renovate the cancer center.The $4.9 million project will create space for support services and is expected to be completed in 2019