ROCHESTER, Minn.-The Mayo Foundation posted the first operating loss in its patient-care division since the Great Depression, finishing $6.2 million in the red for 1993. Executives blamed shrinking Medicare reimbursements and rising patient-care costs for the loss. When research and education expenses are added, Mayo's net operating loss was $42.9 million for the year. Mayo uses patient-care revenues to fund education and research. Patient admissions rose to 392,910 in 1993, compared with 379,338 in 1992, at the three Mayo clinics. Patient revenues rose to $1.327 billion, a gain of $60.7 million over the year before. However, patient expenses rose to $1.3 billion in 1993, compared with $1.2 billion in 1992. Overall, Mayo had a net surplus of $81 million in 1993 when revenues from investments and contributions are added to operations.
LINCOLN, Neb.-The Nebraska Hospital Association's Research and Educational Foundation awarded a $10,000 grant for two researchers to study the potential impact of federal healthcare reform on rural Nebraska. F. Charles Lamphear, director of the University of Nebraska Bureau of Business Research, and Sam Cordes, the head of an agricultural and research institute at the university, will try to project how President Clinton's healthcare reform proposal will affect the demographically changing rural Nebraska. "Through our work, we hope to be able to provide important input to policymakers from a rural perspective," Mr. Lamphear said.
CHICAGO-A $21 million donation by owners of a Chicago-area horse-racing track will help bring a new outpatient and diagnostic-care center to 602-bed University of Chicago Hospitals. The gift from Richard Duchossois, a Chicago businessman who owns the Arlington International Racecourse, was the largest philanthropic donation by a family in the university's history. The money will go toward the $150 million center, which will be known as the Duchossois Center for Advanced Medicine. The gift also will endow a University of Chicago professor of medicine, John E. Ultmann, M.D., who treated Mr. Duchossois' wife, Beverly, who died in 1980 from cancer. "My family has personally experienced (the university hospitals') kindness and professionalism," Mr. Duchossois said. A groundbreaking for the center will take place this June, with construction set for completion in late 1996.