Mayo Clinic saw its operating margin fall to 4.8 percent in the third quarter of fiscal year 2015, down from 8.5 percent in the same period a year ago, as the Rochester, Minn.-based health giant's expenses outpaced its revenue growth.
Mayo reported third-quarter revenue of $2.5 billion, up 5 percent from the same period of last year. The system's expenses also grew, increasing nearly 9.3 percent year over year.
Labor costs and supply costs were the main drivers of the increase in expenses, growing 9.2 percent and 9.7 percent, respectively. Mayo also reported its facility costs were up 9.1 percent in the third quarter of FY 2015, compared to the same period a year ago.
Although Mayo did not provide a breakdown of its operating statistics, it did report its charity care write-offs fell to $43 million in the first nine months of this year, down 17.3 percent from $52 million in the same period of last year.
Mayo ended the third quarter of FY 2015 with operating income of $120 million, down from $205 million in the same period a year ago.
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