"Our employees are Mayo's most valuable resource. In order to retain them during a time of acute shortages in the national healthcare labor market, we must take every step we can to remain competitive and position our hospital as an employer of choice," said Gabarro. "Rather than relying exclusively on recruitment bonuses for new employees, as many hospitals do, Mayo decided to start the longevity bonus program to recognize our existing employees for their loyalty and commitment."

Mayo's 2002 budget, which began Oct. 1, assumes net operating revenues of over $21 million and expenses of just under $20 million. That leaves the hospital an operating margin of $1,035,413, or 4.9%.

Net income is reinvested back into the nonprofit hospital to fund depreciation and acquire new equipment.

Dennis Allen, Mayo's Chief Financial Officer, said the budget anticipates no significant changes in overall utilization of hospital services. Admissions are expected to remain stable, at 1,650 per year. The budget estimates an average daily census of 14.6 patients, with an average length of stay of 3.2 days. Outpatient revenue is expected to account for 59% of Mayo's budget.

Allen expects the hospital's revenues to rise by 4.1% due to a combination of increased usage and selected rate changes that will be made in various departments.

HAD 4 directors also authorized a hospital capital equipment budget of $1,019,562, exclusive of any building renovation and new construction costs associated with Mayo's ongoing facility expansion project. Construction-related costs are included in a separate construction budget and will be funded by a bond issue and other funding sources.

Some of the larger items in the capital equipment budget are radiology equipment, a new ambulance, operating room equipment and nursing monitoring equipment.