Rochester, Minn.-based Mayo Clinic reported $55 million in operating income (1.1% margin) in the third quarter, down from $90 million in the same quarter in 2023.
Income from current activities, including philanthropy and investment returns, was $232 million (4.8% margin), compared to $302 million (7.1% margin) in the prior-year period, according to financial documents published Nov. 18.
"Mayo Clinic's strong third-quarter and year-to-date financial performance underscores the unwavering commitment of our dedicated staff," CFO Dennis Dahlen said in a statement shared with Becker's. "Growing demand for our Category-of-One care, generous philanthropy, favorable investment returns and strategic planning remain key drivers of our results."
Total revenue increased 9% year over year to $4.86 billion while expenses grew by 11.4% to $4.62 billion. Salaries and benefits, totaling $2.62 billion, rose by 9.9% year over year and accounted for 56.6% of total expenses. Mayo attributed the increase to staff growth to accommodate higher volumes and an average 4.4% annual pay increase for all allied health staff.
Mayo Clinic reported a net income of $839 million in the third quarter, compared to $295 million in the same quarter last year.
Days cash on hand was 368 as of Sept. 30, 2024, compared to 349 on Sept. 30, 2023. Long-term debt for the health system was $3.95 billion as of Sept. 30, 2024.
"Continued operational excellence and financial resilience enable our mission-sustaining work and progress toward transforming healthcare," Mr. Dahlen said. "Our financial achievements also enable us to invest in our staff, ensuring they have the resources and support needed to excel in their roles. We've recently expanded financial resources, enhanced benefits and refreshed professional development programs."