Image courtesy of First Homes

By Molly Miller

When we discuss the healthy housing movement, a common theme of successful healthy housing programs is the involvement of an anchor institution as a pillar of stability as the program develops. In Rochester, Minnesota, the Mayo Clinic has served as an anchor institution for the healthy housing movement since 1999, when the Mayo Clinic partnered with the Rochester Area Fund to build 875 units of affordable housing in 5 years under the auspices of a land trust known as First Homes.

Why Mayo Clinic? 

Mayo Clinic is the largest employer in the Rochester area, with approximately 35,000 employees as of December 2013. Additionally, Mayo Clinic is globally recognized as one of the top health care providers, which draws a large number of employees, students, and patients to Rochester. As a result, Mayo Clinic is in a unique position to leverage it’s recognizability as a tool for developing community partnerships such as the First Homes initiative. In addition to it’s initial investment of $7 million to build 875 units of affordable housing through the First Homes program, Mayo Clinic has continued to invest in the community around it through it’s participation in the Destination Medical Center initiative.

What’s Destination Medical Center? 

Destination Medical Center (DMC) is “a 20-year economic development initiative to position Rochester, Minnesota as the world’s premier destination for health and wellness.” One of the six goals of the DMC project is to create a Livable City, which includes an investment in affordable housing in the area that surrounds Mayo Clinic. Mayo Clinic has already committed $3.5 billion to the DMC initiative, which is expected to cost $5 billion. This money will be split between 3 main areas of investment: Mayo Facilities and Service Expansion, Private Business Expansion, and Public Infrastructure.

The DMC & Development Plan estimates that between 2,200 and 3,100 new housing units will be needed to meet the demand for housing created by this initiative. Although it is unclear how many of these new units will be considered “affordable” housing, part of Mayo Clinic’s investment is targeted towards meeting the “satisfaction gap” surrounding affordable housing, which has been a barrier to the recruitment of physicians and employees for Mayo.

Implications for the Future

While Mayo Clinic has committed to an unprecedented investment in affordable housing and community development, hospital systems don’t necessarily need to invest billions of dollars in affordable housing to make an impact on the health of surrounding communities. Mayo Clinic’s investment in affordable housing started with a $7 million commitment to build 875 housing units in Rochester, which resulted in long-term economic development. The success of Mayo Clinic’s investment in affordable housing should serve as encouragement for health care systems and hospitals that are considering how to invest their community development funds.