Dive Brief:
- The leader of the Mayo Clinic is stepping down at the end of the year, the nonprofit health system said Tuesday.
- Dr. Gianrico Farrugia, CEO of Mayo, will complete his eight-year tenure at the end of 2026.
- The Rochester, Minnesota-based health system said its board of trustees could elect the next president and CEO in November so the next leader starts their tenure on Jan. 1, 2027.
Dive Insight:
Since assuming the CEO role in 2019, Farrugia has “led Mayo Clinic through a period of significant strategic advancement and navigated substantial external change,” the health system said in a statement. The nonprofit did not respond to a request for comment on Farrugia’s next steps after Mayo.
Those strategic initiatives include Mayo’s multibillion-dollar investment to expand its campus in Rochester and add other capabilities to its facilities in Arizona and Florida. The project also involves significant digital investments, including creating an artificial intelligence-enabled platform and accelerating discovery and delivery of disease cures.
The health system has enjoyed relatively strong finances during Farrugia’s tenure, although its finances suffered during the COVID-19 pandemic, which broadly challenged nonprofit providers. Still, Mayo has worked to rebound from the pandemic. Last year, it drew in $1.5 billion in net income, a 13% increase from the prior year.
“Dr. Farrugia’s tenure has helped position Mayo Clinic at the forefront of a rapidly changing healthcare landscape,” said Richard Davis, chair of Mayo’s board of trustees, in a statement.
Farrugia was appointed to the CEO role after spending 30 years as a physician at Mayo.
He replaced Dr. John Noseworthy, who spent nine years as chief executive but faced criticism during his final years in the role for saying the health system would prioritize patients with private insurance over those with Medicaid if they sought care at the same time for similar conditions. Noseworthy later said he regretted using the word “prioritized” and clarified that medical need would remain the primary factor for setting appointments.
