ROCHESTER— Mayo Clinic said 2022 brings “new challenges” in a report showing it totaled $3.9 billion in revenue with net operating income of $142 million, down 41% from $243 million dollars in the same quarter in 2021.
On Thursday, Mayo Clinic released an unaudited consolidated first quarter financial report on the Electronic Municipal Market Access website.
The report showed revenue increased 6.9% from the same quarter in 2021, when Mayo Clinic reported $3.67 billion in revenue. However, the operating margin for the first quarter of 2022 is 3.6%, which is well below the 6.6% margin that Mayo Clinic posted in the first quarter of 2021.
“The year 2022 begins with new challenges following nearly two years of pandemic operations. Labor shortages and corresponding inflation in labor costs, ongoing supply chain disruptions and shortages, a higher interest rate environment and volatility in the capital all captured management’s attention,” Mayo Clinic officials said in the report. “The first quarter performance results reflect these new considerations which also serve to reinforce long-term plans to diversify revenues, digitize healthcare where appropriate, use platform models to accelerate innovation and investment in complex and serious clinical care treatments.”
Operating expenses were $3.8 billion, a year-over-year growth of 10.4%. Salaries and benefits rose 7.4% to $2.3 billion. These costs accounted for 59.7% of Mayo’s expenses for the quarter.
“The increase in wages and benefits and supplies and services is due to contract labor and temporary wage practice bonuses,” according to the report.
The Mayo Clinic said its cash and investments fell from $465 million to $17.6 billion. The decline was “largely” due to investment losses. Mayo’s cash and investment position included $13.36 billion in its long-term fund. The fund includes $6.29 billion in endowments and $7.07 billion in unlimited reserves.
Net medical services revenue increased to $3.35 billion, an increase of 6.3% from the same quarter in 2021.
Outpatient visits increased by 1,196,234 from 1,156,158 in 2021 and 1,134,583 in 2020. Surgical cases also show an increase to 33,552, from 32,689 in 2021 and 31,165 in 2020.
Admissions were down. The Mayo Clinic reported 29,117 admissions for the quarter, compared to 29,226 in 2021 and 30,645 in 2020.
Jeff Kiger tracks business action in Rochester and southeastern Minnesota every day in “Heard on the Street.” Send advice to
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