Operating income at Rochester, Minn.-based Mayo Clinic rose 55 percent, from $395.4 million in fiscal year 2012 to $612.1 million in 2013.
That figure comes as total revenue increased to $9.42 billion. Mayo's operating margin for 2013, therefore, stood at 6.5 percent.
Mayo's earnings increased considerably as the academic health system received sizable gifts and federal health IT incentives. Last year, Mayo collected $54.7 million in Medicare and Medicaid dollars for continued meaningful use of electronic health records.
Revenue was up across the board for Mayo's retail pharmacy sales, as well as its commercialization arm. Mayo kept operating expenses in check through some layoffs and general attrition.
In 2012, Mayo's earnings dropped a bit after it completed two affiliations — one with Satilla Health Services in Waycross, Ga., and another with Fairview Red Wing (Minn.) Health Services. The organization completed no acquisitions in 2013, but it continued to expand the Mayo Clinic Care Network, which is a loose network of hospitals and health systems working to improve the quality and delivery of care in their regions.
Executives have also been aggressively investing in capital projects, including the system's $5 billion economic development initiative called Destination Medical Center, which aims to keep Mayo as a global medical hub.
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