Cleveland Clinic CEO says growth is an 'ethical imperative' amid anticipated $200M loss

Cleveland Clinic expects to report a $200 million operating loss for 2022, according to President and CEO Tom Mihaljevic, MD, but the health system still has an eye on growth for the future and expanding access to patient care.

Cleveland Clinic plans to open a new hospital in Mentor, Ohio, in July and continue expansion for several other facilities in the U.S. and abroad.

"As other organizations struggle to expand, we are growing for the right reasons. Each of us would want the best care for our loved ones. Yet many families do not have access to Cleveland Clinic. This makes growth an ethical imperative," said Dr. Mihaljevic, during the annual "State of the Clinic" address.

Cleveland Clinic grows in three ways:

1) Organically at existing location and markets
2) Through mergers and acquisitions
3) With digital tools, including virtual visits

With service expansion in mind, Dr. Mihaljevic said Cleveland Clinic is evolving as an integrated global health system and will slightly shift its operating model to give more responsibility to each institution.

"We will remain patient-centered and institute-based. To serve patients better, our institutes will be given broader responsibilities for delivering care uniformly everywhere," said Dr. Mihaljevic. "The locations where we provide care are forming geographic markets. Their focus is to improve access and ensure the quality of care for the communities we serve."

The uniformity in great patient care extends to Cleveland Clinic's international locations as well. To illustrate his point, Dr. Mihaljevic talked about the health system's perception and brand overseas.

"One thing that surprises me about our international locations is how people refer to us," he said. "If I visit Abu Dhabi, I can ask any cab driver to take me to the best hospital, and they will reply, 'We are going to Cleveland.' In London, 'Cleveland' is becoming shorthand for our hospital. No matter where we go, we are proud to be called Clevelanders. Behind our name, what we do is noticeably different, and that is why patients and caregivers come to us."

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