Cleveland Clinic finances rebound in 2017
In his first State of the Clinic address, Cleveland Clinic's new president and CEO, Dr. Tom Mihaljevic, praised the work of the health system's past leader, highlighted successes of 2017 and set out a vision for the future.
In 2017, the Clinic earned $328 million in operating income — a significant 35% rebound from the year prior — on $8.4 billion in operating revenue, up 5% from 2016.
Mihaljevic attributed financial gains to both cost cutting efforts and growth of the system. He said his goal for this year is to maintain a similar operating margin to 2017's, which was 3.9%, up from 3% in 2016.
With former CEO Dr. Toby Cosgrove watching from the first row in the ballroom of the InterContinental Hotel, Mihaljevic encouraged employees to focus on caring for patients, fellow caregivers, the organization and its communities.
"The achievements of 2017 reflect your outstanding work under the leadership of Dr. Toby Cosgrove," Mihaljevic told the room full of caregivers gathered for his State of the Clinic. "And he has transformed Cleveland Clinic in more ways than we can count and he leaves us well-positioned for our future growth."
In the speech, he highlighted new initiatives for 2018, including a focus on improved patient safety and a new Office of Caregiver Experience. The office should open within the next few months and will address physician burnout, which one in three Cleveland Clinic physicians meet the criteria for, according to a recent survey.
"We do exist to put patients first but we all know we cannot succeed unless we take care of each other," he said.
Safety will be Mihaljevic's top priority as CEO, he said, noting that the system has a "right to be proud" of its work in patient experience, but "we need to go further."
"We will continue to challenge ourselves by setting bold goals," he said. "Hospital-acquired infections and serious safety events should never happen, and I have all the confidence that we will bring those together to zero. And we will become the safest place in health care anywhere."
He also announced that the system will open a Center for the Study of Healthcare Delivery, which will apply the same scientific rigor to operational processes of health care delivery that the Clinic applies to the study of diseases.
The number of the Clinic's patient visits, meanwhile, rose by 7% to 7.6 million, in part due to improved access through new urgent care and Express Care centers, record-setting virtual visits, shared medical appointments and same-day appointments.
"I know that we're united in our commitment and we are defined by our ability to provide exceptional care in an exceptional way," he said. "And as an integrated health care system, we have to deliver uniform and safest care to every patient, every day, in every Cleveland Clinic location."
Here are a few other highlights:
- The 377,000-square-foot Cleveland Clinic Taussig Cancer Center was completed in March 2017.
- In partnership with Select Medical, the Clinic opened a 60-bed inpatient rehabilitation hospital in Beachwood.
- Also in a joint venture with Select Medical, Akron General's Edwin Shaw Rehabilitation Hospital moved to a 60-bed inpatient facility.
- The Stow-Falls Medical Outpatient Center opened in Cuyahoga Falls.
- IBM Watson Health, which will house the Cleveland arm of IBM Healthcare's data analytics enterprise, will open this year.
- The Family Health Center in Lakewood is scheduled to open in July of this year.
- The Cleveland Clinic Akron General Emergency Department and Level 1 Trauma Center is slated to open this summer.
- Cleveland Clinic Children's Outpatient Center, where pediatric outpatient services will be consolidated in the former Taussig Cancer Center, will open this fall.
- The Health Education Campus, a joint venture between the Clinic and Case Western Reserve University, will open in July 2019.
- Another joint venture between the Clinic and CWRU, the dental clinic will open next year as well.
- Construction on Cleveland Clinic London is expected to be completed in late 2020.
- Also opening this year are two facilities in Florida: a Family Health Center in Coral Springs and a bed tower in Weston.
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