Cleveland Clinic CEO, President Tom Mihaljevic, M.D., Delivers Annual State of the Clinic Message

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.