During today’s annual State of the Clinic address, Cleveland Clinic CEO and President Tom Mihaljevic, M.D., reported that the health system remains strong and thriving, despite the economic challenges and staffing shortages affecting healthcare.
In 2023, Cleveland Clinic provided nearly 14 million patient encounters worldwide – the most in its history – and generated more than $14 billion in revenue, exceeding expectations.
“In the past, these results would assure a healthy financial foundation for Cleveland Clinic, but all hospitals, including us, are challenged by inflation,” said Dr. Mihaljevic, the holder of the Morton L. Mandel CEO Chair. “The rising cost of wages, supplies and pharmaceuticals has greatly outpaced nominal increases in reimbursement.”
Cleveland Clinic finished 2023 with a 0.4% operating margin, an improvement over 2022.
“Positive operating margins allow us to reinvest in care, caregivers and our facilities to grow and serve more patients,” Dr. Mihaljevic said. “Today, we are more productive than ever. While other hospitals are closing services, we continue to offer services that our most vulnerable patients depend on – including pediatrics and mental health.
“We continue to thrive. Cleveland Clinic is serving more patients, conducting more research, and educating more learners than ever before.”
During the State of the Clinic presentation, Dr. Mihaljevic reiterated Cleveland Clinic’s commitment to its four care priorities: Caring for patients, caregivers, communities and the Cleveland Clinic organization.
Caring for Patients:
Since 2017, Cleveland Clinic has increased services to patients by 55 percent. Cleveland Clinic now cares for patients at nearly 300 locations on three continents.
“Cleveland Clinic offers patients the best chance of survival regardless of medical condition,” he said. “Nothing makes us prouder than serving patients as one Cleveland Clinic.”
To meet its vision of being the best place to receive care, Cleveland Clinic relies on sharing best practices to deliver consistent care for every patient. Innovations come from hospitals throughout the system, including:
- Mentor Hospital’s use of telehealth in every facet of care.
- South Pointe Hospital’s prevention of central line infections and serious safety events in the operating room for an entire year.
- Fairview Hospital’s continued excellence as one of America’s safest hospitals.
- Weston Hospital’s command center to make emergency care more available.
- Cleveland Clinic Florida’s model of hospital care in patients’ homes, which provides an accessible, affordable and digital example of the future of patient care.
- And Marymount Hospital’s new model of care, which teams up nurses and patient care nursing assistants to reduce staffing needs while improving patient satisfaction and caregiver engagement.
Caring for Caregivers:
Cleveland Clinic employs 81,000 caregivers worldwide. To meet its goal of being the best place to work in healthcare, Cleveland Clinic is focused on building an inclusive workforce, providing competitive compensation and maintaining a safe environment.
“Violence against healthcare workers is a silent epidemic,” Dr. Mihaljevic said. “Last year, our own caregivers reported 3,800 incidents of verbal and physical violence. Violence will never be accepted as a part of our job.”
To improve safety, Cleveland Clinic continues to enhance its police and security presence; trained caregivers in de-escalating difficult situations with patients and families; and installed magnetometers in every Emergency Department, which led to the confiscation of 30,000 weapons brought in by patients and visitors last year.
Caring for the Community:
In 2023, Cleveland Clinic made significant efforts to address lead poisoning, infant and maternal mortality, and hunger in the communities it serves.
“With our help, (these issues) can be solved,” Dr. Mihaljevic said. “With Cleveland Clinic’s growth, our collective voice has become louder. We are speaking up for our communities and local children, who do not have a voice of their own.”
- Lead poisoning: Cleveland Clinic has committed $53 million into the Lead Safe Cleveland Coalition, resulting in lead-safe housing for 177 children. More homes will be remediated this year.
- Infant and maternal health: The Center for Infant and Maternal Health opened in 2023 with the aim of providing better support before and after delivery for at-risk women.
- Hunger and food insecurity: Cleveland Clinic has fed 13,000 children more than $10 million more over five years to address hunger. Akron General opened two food pantries. Working closely with Meijer, Cleveland Clinic helped to bring a grocery market to Fairfax, which had been a food desert for more than 50 years.
“Our ambition is for children to have hope for a brighter future,” Dr. Mihaljevic said. “Cleveland Clinic is grateful to stand with many partners and proudly say: We are building a healthy community together.”
Caring for the Cleveland Clinic Organization:
“Our ethical imperative is to grow,” Dr. Mihaljevic said, “and our relevance in the world is counted by the number of lives we touch with Cleveland Clinic care.”
Recent examples of Cleveland Clinic’s growth include:
- Mentor Hospital, which is designed to be efficient, modular and expandable. Demand for care has exceeded expectations.
- Renovation and expansion of Cole Eye Institute, which will be completed by the end of 2025.
- Construction of a new neurological hospital, which will open in 2026 and be customized to the needs of patients with neurological conditions, their loved ones and our clinicians.
- Cleveland Clinic Florida grew to serve 7% more patients last year.
- Expansion of virtual care in Canada.
- Technological advancements at Cleveland Clinic London, which are improving patient outcomes.
- The opening of the Fatima bint Mubarak Center in Abu Dhabi, which provides a global destination for cancer care.
Cleveland Clinic allocates more than $500 million annually to research, innovation and education.
Research space on main campus is doubling in size. Last year, Cleveland Clinic added 45,000 square feet of renovated laboratories, while construction begins this year on two new research buildings in the Cleveland Innovation District.
In Ohio and Florida, cutting-edge research on pathogens and cancer immunotherapy is taking place, with the support of a transformational gift from the United Arab Emirates.
As part of the Discovery Accelerator, Cleveland Clinic is home to the first IBM quantum computer dedicated to medical research. Quantum technology will make finding cures swift and efficient, including a recently funded project studying how to detect lung cancer with a blood test.
Cleveland Clinic’s Brain Study is the largest prospective neurological study ever attempted, with the goal of discovering biomarkers of brain disease before it appears.
In closing the program, Dr Mihaljevic said, “As we begin 2024, every aspect of our mission is thriving, from clinical care to research and education. Our caregiver family is engaged. We have clear priorities for serving our communities. And we are performing well in a demanding financial environment.
“With the most advanced therapies and technologies readily available to us, I can think of no better time to serve in healthcare. And there is no other place I would rather be than right here with our caregivers. By following our shared mission, we remain a beacon of hope to our patients.”