Cleveland Clinic President and CEO Dr. Tom Mihaljevic announced Monday that the health system ended last year with operating revenue of $18 billion and an operating margin of more than 4%.
Mihaljevic shared the results during his annual 鈥淪tate of the Cleveland Clinic鈥� address, saying the system performed better than expected. He credited savings from a reorganization several years ago and revenue growth driven by an increase in patient volume and the complexity of care provided.
During the speech, he said the planned Level 1 trauma center for both children and adults would be part of a long-term transformation of the Clinic鈥檚 main campus, beginning with the opening of the Neurological Institute on main campus and a cancer center at Fairview Hospital, both slated for next year.
Speaking with reporters afterward, Mihaljevic said pursuing a trauma center would allow the Clinic to provide patients with the full range of emergency care within its system.
鈥淲e provide the most comprehensive services of any provider in Ohio,鈥� Mihaljevic said. 鈥淵et we are the only large integrated healthcare delivery system in the United States that doesn鈥檛 have a Level 1 trauma center, so many of our patients need to be transferred outside of our care.鈥�
Cleveland already has two Level 1 trauma centers operated by MetroHealth System and University Hospitals. UH鈥檚 trauma center is located at its main campus, just blocks from Cleveland Clinic.
When asked whether there would be enough trauma patients to meet national standards with three Level 1 centers operating in close proximity, Mihaljevic said he believes the Clinic will meet the required patient volume.
MetroHealth leaders questioned the need for another trauma center in Cleveland. In an emailed statement, MetroHealth President and CEO Dr. Christine Alexander-Rager said the Clinic has not explained why the expansion is necessary.
鈥淒r. Mihaljevic today repeated Cleveland Clinic鈥檚 intent to open a Level 1 trauma center, describing it as a next step in the Clinic鈥檚 campus master plan,鈥� Alexander-Rager said. 鈥淏ut he still did not explain why this expansion is needed in a city that already has two high-quality Level 1 trauma centers, nor did he describe what, if any, input the Clinic received from first responders or community stakeholders in formulating its plan.鈥�
She added that any expansion should be driven by demonstrated community need.
鈥淎ny expansion that risks harming patient outcomes and driving up costs for Northeast Ohio families must be based on clear community need, not checking a box on a master plan,鈥� Alexander-Rager said.
Mihaljevic said the trauma center is expected to open in about two years, pending regulatory approval and construction.
