Cleveland Clinic putting more than $1.3B into new capital projects
Photo courtesy of Cleveland Clinic
In an annual State of Clinic address this week, Cleveland Clinic President and CEO Dr. Tom Mihaljevic said the nonprofit academic medical center will be investing about $1.3 billion in capital projects this year, including new hospitals, buildings and renovations to current facilities.
Speaking directly to the health system’s 70,000-plus employees worldwide, Mihaljevic praised the Cleveland Clinic workforce for staying committed to the organization’s mission despite facing an especially difficult year, referring to the still-ongoing COVID-19 pandemic.
Despite the coronavirus and its endless variants, 2021 yielded Cleveland Clinic’s strongest financial performance and highest clinical activity recorded in its history, Mihaljevic said. Total operating revenue reached $12.4 billion, with an operating income of $746 million. The health system performed 10.4 million outpatient visits – a 17% increase from 2020 – and more than 22,800 COVID-19 admissions.
Due in part to that strong financial showing, the health system will be targeting a number of projects and investments in 2022, including the opening of Cleveland Clinic London hospital, a building in central London that will encompass eight stories and 324,000 square feet.
On Cleveland Clinic’s main campus in Cleveland, Ohio, the system will construct its first integrated neurological hospital, which will consolidate neurological care that currently takes place in eight different locations. The system will also open a new hospital in Mentor, Ohio, which is slated to open its doors sometime in 2023.
Also on tap is an expansion of the Cole Eye Institute, which is slated to have an additional 100,000 square feet built onto it to accommodate the growth in patient visits; Fairview hospital in Cleveland, meanwhile, will be renovated to address the needs of patients and caregivers.
In addition, the Cleveland Clinic location in Weston, Florida will see its bed tower expanded, and the system will open a new oncology center in Abu Dhabi later this year, which will serve as a hub for treatment and research.
WHAT’S THE IMPACT
Further investments in research can prevent disease, said Mihaljevic.
“Cleveland Clinic has the vision to make these discoveries,” he said. “We have always prepared tomorrow’s caregivers to deliver the best care.”
Examples include studies by the Global Center for Pathogen and Human Health Research investigating viruses, cancers and the links between the two; a partnership with IBM to employ disease data; a long-term brain study to prevent neurological disease; a bionic arm that allows the wearer to think, move and feel naturally; and a new breast cancer vaccine, now in clinical trials.
During the State of Clinic Address, Mihaljevic also highlighted the organization’s philanthropy, which he said has made a sizable impact on the hospital’s ability to fulfill its mission. The Power of Every One campaign came to a close in 2021 – exceeding its $2 billion goal by raising nearly $2.6 billion. The money funded roles for scientists as well as scientific breakthroughs, Mihaljevic said.
As for community investments, the prevention of childhood lead poisoning is Cleveland Clinic’s top community initiative in 2022, pledging $52.5 million to identify and remove sources of lead exposure from Cleveland homes.
Other community initiatives for the year will be focused on infant mortality, employment and food insecurity.
THE LARGER TREND
The projects slated for the coming year will likely ease some of the strains the pandemic has brought, including “unprecedented demand” for inpatient care that led many of Cleveland Clinic’s facilities to deal with near-full capacity, according to an announcement in December.
A surge at that time prompted the organization to adjust the scheduling of non-urgent surgeries at certain locations, with an eye toward freeing up resources for patients “with immediate and life-threatening needs.”
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