Mayo Clinic

TO ASSIST IN CARRYING OUT THE CHARITABLE PURPOSES OF MAYO CLINIC

SUPPORT SERVICES (SEE SCHEDULE O)SUPPORT SERVICES:MAYO FOUNDATION FOR MEDICAL EDUCATION AND RESEARCH (MFMER) PARTICIPATES IN THE DIRECTION AND GUIDANCE OF MEDICAL CLINICS OPERATED BY MAYO CLINIC. THESE INCLUDE MAYO CLINIC, LOCATED IN ROCHESTER, MINNESOTA, AS WELL AS SEPARATE, NONPROFIT MEDICAL CLINICS OPERATED BY MAYO CLINIC IN JACKSONVILLE, FLORIDA; SCOTTSDALE, ARIZONA; EAU CLAIRE, LA CROSSE AND MENOMONIE, WISCONSIN; ALBERT LEA, AUSTIN, CANNON FALLS, FAIRMONT, FARIBAULT, LAKE CITY, MANKATO, NEW PRAGUE, OWATONNA, RED WING, ST. JAMES, SPRINGFIELD, WABASHA AND WASECA, MINNESOTA; DECORAH, IOWA AND WAYCROSS, GEORGIA. MFMER'S RELATIONSHIP WITH THESE CLINICS IS TO ENSURE THE HIGHEST QUALITY STANDARDS OF PATIENT CARE AND PATIENT DATA ESTABLISHED AT MAYO CLINIC ARE CONSISTENT THROUGHOUT THE MAYO CLINIC SYSTEM SO THAT THE RESEARCH AND EDUCATIONAL PURPOSES OF MAYO CLINIC CAN BE ACCOMPLISHED. THE EXTENSION OF THE RESEARCH, EDUCATION AND PATIENT CARE LEADERSHIP ROLE ASSOCIATED WITH MAYO CLINIC INTO AREAS OUTSIDE OF ROCHESTER CREATES USEFUL AND OTHERWISE UNAVAILABLE COMPARATIVE RESEARCH AND EDUCATIONAL OPPORTUNITIES TO FURTHER MAYO'S EXEMPT PURPOSE.MFMER ALSO PROVIDES PAYROLL, PURCHASING, SALARY & BENEFIT ADMINISTRATION AND OTHER MISCELLANEOUS SUPPORT SERVICES FOR MAYO CLINIC AND AFFILIATES.

LICENSING OF TECHNOLOGY:MAKING THE RESULTS OF RESEARCH AND TECHNOLOGY DEVELOPED THROUGHOUT MAYO CLINIC AVAILABLE TO THE PUBLIC IS ANOTHER FUNCTION OF MFMER. THIS IS ACCOMPLISHED THROUGH LICENSING ARRANGEMENTS WITH OTHERS HAVING THE CAPABILITY TO DISTRIBUTE THE TECHNOLOGY TO THE MEDICAL COMMUNITY AND THE GENERAL PUBLIC. DURING 2014, MFMER SIGNED 91 LICENSES WITH COMPANIES TO DISTRIBUTE MAYO CLINIC TECHNOLOGY AND INVENTIONS. IN EXCHANGE FOR THESE LICENSES, MFMER RECEIVES ROYALTIES BASED ON GROSS REVENUES GENERATED FROM THE PRODUCTS DEVELOPED FROM THE LICENSED TECHNOLOGY OR INVENTION. THE REVENUES FROM THESE ROYALTIES ARE USED TO FURTHER THE RESEARCH AND EDUCATIONAL ACTIVITIES OF MAYO CLINIC.MAYO CLINIC VENTURES (MCV) WORKS WITH INVENTORS AND INDUSTRY TO MOVE INNOVATIONS FROM BENCH TO BEDSIDE BY CREATING NEW LICENSING OPPORTUNITIES, NEW COMPANIES AND NEW PRODUCTS. MCV HAS FILED MORE THAN 5575 PATENT APPLICATIONS RESULTING IN MORE THAN 752 ACTIVE LICENSE AGREEMENTS WITH COMPANIES IN THE BIOMEDICAL AND MANUFACTURING INDUSTRIES.TECHNOLOGY BASED VENTURES (TBV): WHEN CLEARLY DEFINED CRITERIA ARE MET, A TECHNOLOGY MAY BE CONSIDERED FOR THE OFFICE OF INTELLECTUAL PROPERTY'S TECHNOLOGY BASED VENTURES (TBV) PROGRAM, WHICH COMMERCIALIZES A TECHNOLOGY IN EXCHANGE FOR EQUITY AND ACTS AS A VEHICLE FOR A POSSIBLE MAYO CLINIC INVESTMENT INTO A START-UP COMPANY. THE TECHNOLOGY-BASED VENTURES PROGRAM FOCUSES ON COMMERCIALIZING MAYO CLINIC TECHNOLOGIES BY CREATING NEW COMPANIES, LICENSING TECHNOLOGIES INTO EXISTING START-UP COMPANIES, AND INVESTING IN VENTURE CAPITAL-BACKED COMPANIES. THIS WORK IS DONE IN CLOSE PARTNERSHIP WITH MAYO TREASURY, VENTURE CAPITAL FIRMS AND MANAGEMENT TEAMS THAT HAVE SIGNIFICANT EXPERIENCE IN THE HEALTH CARE INDUSTRY.AS PART OF THIS EFFORT, THE TECHNOLOGY-BASED VENTURES PROGRAM MANAGES A VENTURE CAPITAL INVESTMENT FUND. THE PROGRAM CO-INVESTS WITH LEADING VENTURE CAPITAL FIRMS IN HEALTH CARE TECHNOLOGY COMPANIES AND SEEKS TO PROVIDE A FINANCIAL RETURN TO MAYO CLINIC TO SUPPORT PATIENT CARE, RESEARCH AND EDUCATION. SINCE 1996, THE PROGRAM HAS INVESTED IN OVER TWO-DOZEN COMPANIES THAT ARE BASED ON MAYO CLINIC TECHNOLOGY OR UTILIZE MAYO CLINIC EXPERTISE. DURING 2013 THE FUND WAS REORGANIZED AND NAMED AS MAYO CLINIC CO-INVESTMENT FUND. THE FUND NOW HAS APPROVAL TO INVEST UP TO $100 MILLION. THE FUND OPERATES IN A COLLABORATIVE RELATIONSHIP BETWEEN MAYO CLINIC VENTURES AND MAYO CLINIC TREASURY SERVICES.

PHARMACIES AND MEDICAL PRODUCTS (SEE SCHEDULE O)PHARMACIES AND MEDICAL PRODUCTS:IN ORDER TO CONVENIENTLY ACCOMMODATE THE NEEDS OF PATIENTS AND EMPLOYEES OF MAYO CLINIC, MFMER OPERATES SEVEN PHARMACIES AND THREE MEDICAL PRODUCT STORES AT MAYO CLINIC SITES. IN 2014, 1,076,122 PRESCRIPTIONS AND 124,500 MEDICAL PRODUCT ORDERS WERE FILLED FOR MAYO CLINIC EMPLOYEES, RETIREES, AND PATIENTS. THESE OPERATIONS ARE NOT INTENDED TO SERVE THE GENERAL PUBLIC.

HEALTH INFORMATION (SEE SCHEDULE O)HEALTH INFORMATION:MFMER IS USED AS A MEANS OF MAKING AVAILABLE TO THE MEDICAL COMMUNITY AND TO THE GENERAL PUBLIC THE RESULTS OF MAYO'S RESEARCH AND EDUCATION PROGRAMS. GLOBAL BUSINESS SOLUTIONS HAS SERVICE LINES ENCOMPASSING THE WEB, MOBILE, PRINT AND TELEPHONIC CHANNELS THAT MAKE MAYO CLINICS HEALTH INFORMATION, EXPERTISE AND UNIQUE MODEL OF CARE AVAILABLE TO MILLIONS OF PEOPLE.DURING 2014, MFMER SOLD 6,682,362 COPIES OF THE MAYO CLINIC HEALTH LETTER. THE HEALTH LETTER IS A MONTHLY NEWSLETTER CONTAINING USEFUL HEALTH INFORMATION FOR THE GENERAL PUBLIC.MFMER SOLD 280,998 COPIES OF THE MAYO CLINIC EMBODYHEALTH NEWSLETTER. MOST OF THE COPIES WERE SOLD TO EMPLOYERS AND MEMBER ORGANIZATIONS AS PART OF MFMER'S CORPORATE WELLNESS PROGRAM. THIS PROGRAM IS DESIGNED TO MEET THE SPECIFIC POPULATION HEALTH MANAGEMENT NEEDS OF EMPLOYERS AND MEMBER ORGANIZATIONS. THE EMBODYHEALTH NEWSLETTER PROVIDES HEALTH INFORMATION TO THE SUBSCRIBING ORGANIZATION'S EMPLOYEES AND MEMBERS. THE EMBODYHEALTH NEWSLETTER ENDED IN FEBRUARY 2014.MFMER ALSO SELLS NUMEROUS BOOKS ON HEALTH RELATED TOPICS. DURING 2014, MFMER SOLD 448,577 COPIES OF BOOKS ON HEALTH RELATED TOPICS TO CONSUMERS AND EMPLOYERS. MFMER ALSO OPERATES MAYO'S INFORMATIONAL CONSUMER WEBSITE, MAYOCLINIC.COM, WHICH HAS THOUSANDS OF VISITORS DAILY.ASK MAYO CLINIC, A TELEPHONIC HEALTH RESOURCE ADMINISTERED BY MFMER IS A STRATEGIC RESOURCE AVAILABLE TO EMPLOYERS TO OFFER TO THEIR EMPLOYEES. THIS 24-HOUR NURSE LINE AND HEALTH ADVOCACY SERVICE IS STAFFED BY EXPERIENCED REGISTERED NURSES WHO DRAW ON THE RESOURCES OF MAYO CLINIC TO HELP PEOPLE CHOOSE THE RIGHT LEVEL OF CARE FOR ILLNESSES AND INJURIES, AND ACCESS APPROPRIATE RESOURCES FOR THEIR PERSONAL HEALTH NEEDS.OTHER TELEPHONIC HEALTH RESOURCES ADMINISTERED BY MFMER TO EMPLOYERS TO OFFER TO THEIR EMPLOYEES INCLUDE: HEALTHY LIVING COACHING, DISEASE MANAGEMENT, AND PREGNANCY ADVISOR. HEALTHY LIVING ONLINE IS THE WEB PRODUCT SOLD TO EMPLOYERS WHICH INCLUDES AN ONLINE HEALTH ASSESSMENT.