ROCHESTER, Minn. — The Destination Medical Center Corporation board has met a few times already, but Thursday’s meeting took a major step forward.
The saying goes you have got to spend money to make money and that is the plan with Destination Medical Center. In the first year of the 20-year plan, leaders will have about $8.2 million to work with.
“New hires, communications, a variety of functions. It’s a nice complex budget. It’s a one-year budget that really has the big items we need to start in on right now,” said Dr. Patricia Simmons with the DMC Economic Development Agency.
About $1.7 million of that will go toward organizational expenses like hiring an executive director and other staff. The remaining $6.4 million will go toward third party costs.
“The biggest single element of cost in the budget is for the subcontractors who are going to develop the plan that’s a one-time deal, developing the plan,” Simmons said.
Because of much of those start-up costs, the budget is not expected to be this high again.
“There’ll be shifting of the costs, and some of them will simply go away because we’ll have completed a big chunk of the plan and some of the consulting costs that you need when you’re creating a company, those will change markedly,” Simmons said.
DMCC Board Chair Tina Smith said getting a budget approved is a big step in the right direction.
“We have a ton of work to do this year and a big piece of work is putting together this development plan. Almost all of the budget is to pay for that development plan. We’re going to do it one time, it’s got to be a plan that really works for the next 20 years,” Smith said.
Although in the grand scheme of things it is a 20-year project, the board knows it is the first year that is vital.
“It is really the foundation that we’re going to be building on for the next 20 years. It’s why it’s so important to get our governing documents done correctly. We think the relationships between the state and the city and the county and Mayo Clinic are really fundamental, so we’ve got to get that right,” Smith said.
Simmons said that the cost of the workforce will soon come into play. She said they will not be hiring people on until the need is there.