MANKATO — Besides the economic boost from a strong agricultural economy, Mankato continues to be somewhat insulated from the recession because of the continued expansion of the health-care industry.

Immanuel St. Joseph’s Mayo Health, the Mankato Clinic, the Orthopaedic and Fracture Clinic and related sectors are an economic powerhouse that, while affected by the downturn, are more resilient than most industries.

The story for 2009 in health care is a steady, albeit cautious growth and a new sense of cooperation between the two major players: ISJ and Mankato Clinic.

Since Mayo’s purchase of ISJ in March 1996, tensions increased between the two as ISJ Mayo expanded into primary physician and specialty care fields once dominated by Mankato Clinic.

Those tensions boiled over publicly last year when Mankato Clinic made the surprising announcement it planned to build a competing full-service hospital in Mankato.

Since then, Mankato Clinic has new leadership, has shelved its plans for a hospital and has been meeting with ISJ leadership frequently to find ways to cooperate.

Randy Farrow, who started as CEO of the Mankato Clinic in July, said the two groups will continue to compete but have much they can collaborate on.

“We’re concentrating on developing a dialogue with the hospital, talking about some of the past frustrations, what led to the concept of a second hospital,” Farrow said. “We’re pretty optimistic that if we work through those, we wouldn’t pursue a second hospital.”

Dr. Greg Kutcher, who took over as president and CEO of ISJ 18 months ago, believes there are plenty of areas for cooperation.

“Clinic leadership and our leadership have been meeting on a regular basis. We believe we are aligned in providing the best care for patients and working on ways to collaborate,” Kutcher said.

Construction continues
Both groups have building or expansion plans that are recently finished or under way.

The clinic has moved all of its non-medical offices — business, administration, marketing, HR — to Madison East Center, as well as dermatology, diabetes care and psychiatry, which do outpatient care that doesn’t need to be near the hospital. The move frees up space at the main clinic, attached to the hospital.

“As we’ve grown in a number of areas, we’re running out of space,” Farrow said. At the main clinic they are expanding oncology, cardiology, neurology, urgent care, pediatrics, OB/gyn and starting a nuclear medicine program.

ISJ is just finishing a new addition at its EastRidge Clinic for a sleep diagnostic center and a women’s diagnostic center.

A new ISJ clinic on the campus of the St. Peter hospital will open in March.

The new cancer center at ISJ will be open in August, allowing them to combine their medical and radiation oncology in one location.

“We’re also developing some space remodeling in the hospitals,” Kutcher said.

ISJ is designing a new three-story tower atop an existing building to add 50 beds and expand the emergency department and surgical facilities.

“The start date is on hold due to the severe downtown in the economy,” Kutcher said.

Because of the economy, Farrow said the Mankato Clinic, too, has slowed a plan to expand the surgery center on the Wickersham campus. They may add two operating rooms — they now have four — later this year or in 2010.



This story is featured in the January MN Valley Business magazine. To see the entire issue online go to www.mvbusiness.net.