Mayo Clinic's annual operating income tops $1B for first time

Mayo Clinic reported higher revenue in 2019, and the Rochester, Minn.-based health system's operating income surged past $1 billion, according to financial documents released Feb. 25.

Mayo Clinic's revenue totaled $13.8 billion last year, up 9.6 percent from 2018. The health system's revenue growth was largely driven by higher inpatient hospital and surgical patient volumes. During 2019, Mayo treated more than 1.2 million patients and medical services revenue increased 9.3 percent to $11.6 billion, according to the Post Bulletin

"Volumes kept growing last year," Mayo Clinic CFO Dennis Dahlen told the Star Tribune. "We're doing more transplants than ever and excelling at what it is that Mayo Clinic does really well."

The health system's operating expenses totaled $12.8 billion in 2019, up 6.4 percent from a year earlier. Mayo saw expenses increase across all categories, including labor and supplies.

Mayo closed out 2019 with operating income of $1.06 billion, marking the first time the health system's operating income has topped $1 billion. In 2018, Mayo recorded operating income of $617 million.

During 2019, the health system delivered $590 million in uncompensated care, including $96 million in charity care. Total uncompensated care was basically flat year over year. 

After factoring in investment returns and other nonoperating income, Mayo reported net income of $2.3 billion in 2019. That's up from net income of $554 million in 2018.

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