Like college kids at spring break, the nation's biggest names in health care are spending some serious coin in Florida.
In March, the Mayo Clinic said it would spend $100 million at its hospital in Jacksonville to better position the medical center as a health care destination for the southeastern U.S.
It was the latest move by Mayo in Florida, where the Rochester-based clinic isn't the only out-of-town operator that's growing in the state.
Medical centers are competing for patients with serious conditions that generate more revenue, while also confronting trends that generally are limiting payments for inpatient services, said Martin Arrick, an analyst with Standard & Poor's.
"You're beginning to see people leapfrogging outside of their immediate service areas," said Arrick. "[There's] this whole sense that people need to get bigger, and want to put their stake in the ground in more places, because they want a bigger funnel back to the mother ship."
Within the past year, the Cleveland Clinic and Johns Hopkins Medicine in Baltimore have announced plans to grow their respective operations in southeast Florida and St. Petersburg. In February, New York's Memorial Sloan Kettering rolled out plans for joint operation of a cancer center in the Miami area, while Houston's M.D. Anderson recently teamed with a Jacksonville hospital to launch a cancer center.
Florida, the nation's third-largest state by population, is also among the fastest-growing. Nearly 20 percent of its 20.3 million residents are over age 65, a demographic that uses a lot of health care. Those factors make it an attractive market, analysts say, along with its proximity to patients who travel for health care from Central and South America.
For a variety of reasons, the federal Medicare program pays more per person in Florida than in many other parts of the country, including Minnesota, said Allan Baumgarten, an independent health care analyst in St. Louis Park.