Rochester, Minn.-based Mayo Clinic reported an operating income of $302 million (6.8% margin) in the third quarter, up from $157 million (3.8% margin) in the same period last year.
Third-quarter revenue increased 8.2% year over year to $4.5 billion while expenses rose 4.8% to $4.2 billion, according to financial documents published Nov. 17
As of Sept. 30, year to date net medical service revenue of $11.2 billion was 84.8% of total revenue and represented an 8.8% increase from prior year. Mayo's total operating revenue for the period was $13.2 billion, reflecting a 9.3% increase over the same period in 2022.
Salaries and benefits increased 2.4% year over year in the third quarter to $2.38 billion, comprising 57.4% of total expenses. For the nine months ending Sept. 30, salaries and benefits rose 5.4% year over year to $7.2 billion, or 58.2% of total expenses.
Mayo said the increase in labor costs is due to planned salary increases and an increase in overall full-time equivalents in consultant staff and allied health employees as recruitment continues to progress.
Net income for the third quarter was $21.1 billion, compared with $16.6 billion in the same period in 2022.
"Mayo Clinic's third-quarter performance is the result of continued strong demand for clinical services, stabilization of workforce issues and focused performance improvement initiatives," management said in its earnings documents. "Significant investments in new capacity continue, as do investments in strategic areas of digital transformation and technology."