Mayo Clinic's operating income climbs 32%

Rochester, Minn.-based Mayo Clinic ended the first nine months of 2018 on strong financial footing.

Mayo Clinic reported revenues of $9.5 billion in the first three quarters of this year, compared to $8.8 billion in the same period of 2017, according to unaudited financial statements released Nov. 16. The boost was partially attributable to higher medical service revenue, which climbed more than 7 percent year over year.

After factoring in expenses, which grew from $8.4 billion to $8.8 billion year over year, Mayo ended the first nine months of 2018 with operating income of $601 million. That's up 32 percent from the same period of 2017, when Mayo recorded operating income of $455 million.

Mayo said it has approximately $908 million worth of construction projects in the works. Those costs will be expended over the next three to five years. In addition, Mayo is in the process of replacing its EMR system. The systemwide Epic implementation is part of a multiyear technology modernization project, which Mayo officials estimate encompasses $1.5 billion worth of investments.

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