Mayo Clinic’s 2020 Financial Performance Strong Despite Pandemic
Rochester, MN (KROC-AM News) - The Mayo Clinic saw its net operating income drop almost 25 percent last year but Minnesota's largest private-sector employer still managed to report a strong financial performance for a year dominated by a pandemic that curtailed its highest revenue-generating services for months.
A required regulatory filing released today shows Mayo's net operating income for 2020 totaled almost $728 million. While that was down about $224 million from 2019, Mayo still reported a healthy operating margin of 5.2 percent.
The Mayo Clinic reported overall revenues rose 1.5 percent to $13.9 billion, despite a one percent decline in medical service revenue. Mayo says the income growth was due to a 19 percent increase in revenues from Mayo Clinic Laboratories and other diversified sources and an over 9 percent increase in investment income supporting operations. In addition, Mayo retained $182 million in federal CARES Act funding it received last spring at the beginning of the pandemic.
Gifts to the Mayo Clinic grew almost 7 percent last year and totaled $587 million. When future commitments from benefactors are included, the total is about $1 billion.
The annual report from Mayo says it now employs over 71,000 people, including more than 7,000 physicians and scientists worldwide. Its patient total for 2020 was above 1.3 million.
The health care provider indicated it paid $178 million in taxes last year, including $28 million in property taxes. Mayo also says it provided $629 million in uncompensated care. $89 million was directed to charity care, while the remainder represents the amount the Mayo Clinic spent on the unpaid portions of the cost of treating Medicare and Medicaid patients.
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