Rochester, Minnesota, is about to begin a project that will result in a seismic change. The city, home to the world renowned Mayo Clinic, has approved one of the most visionary public-private partnerships (P3s) in recent times.
P3s are nothing new, but the sheer scope of Rochester’s plan is so extremely bold and visionary, it will be carefully scrutinized. The city is poised to launch a $6.5 billion project designed to remake the downtown area and expand the Mayo Clinic to ensure worldwide status through the next century.
The initiative, expected to span 20 years, will result in a more attractive and competitive medical destination center.
The project’s overall goal will be to place the city and the clinic at the very top of the extremely competitive $100 billion-a-year medical tourism market.
About 40 percent of the 400,000 patients who visit the Mayo Clinic each year travel from outside a 500-mile radius. City leaders don’t want to lose ground to rivals like the Cleveland Clinic, Johns Hopkins or the Texas Medical Center, so the plan is designed to build on what is already there and incorporate additional enhancements for tourists, families and patients.
The state of Minnesota and the city of Rochester will both invest in the project. Public funds, at least $585 million, will be used for infrastructure and land acquisition. To make visitors more comfortable during harsh Minnesota winters, for instance, heated sidewalks and underground walkways will be constructed.
Private partners will contribute approximately $6 billion, which will be used to fund new hospital facilities and development. Many biotech and pharmaceutical businesses that complement operations of the Mayo Clinic will be constructed, expanded or renovated. Restaurants, high-end retailers and entertainment venues will be brought into redesigned space.
Currently, the Mayo Clinic employs about 38,000 people. By the time the Destination Medical Center project is completed, the city estimates new jobs created will total between 25,000 and 45,000.
For a city of 110,000 residents, this project is huge. There may be as many as seven entirely new neighborhoods created and there is talk of a high-speed rail that links St. Paul and Minneapolis to Rochester.
What’s the basis for this visionary transformation? A commitment not to be outdone!
Over the last 20 years, the Texas Medical Center became known as the world’s largest medical center. It employs more than 100,000 people. Cleveland Clinic has spent billions over the last few years and now has operations in Northern Ohio, Nevada and Florida as well as in Canada and Abu Dhabi. Baltimore’s Johns Hopkins University is undergoing a major expansion of its own. There are renowned medical destination centers in Canada, Singapore and the UK. Competition for prominence in this space is fierce and continual. America’s medical destination centers are wise to be bold, visionary and fiercely aggressive. The return on investment will be huge and all Americans will benefit.
To learn how to partner with state government on upcoming medical and healthcare projects, call one of our procurement consultants or email us at sales@spartnerships.com.