Mayo Clinic Net Operating Income Tops $150M During Pandemic
Rochester, MN (KROC-AM News) - The Mayo Clinic is reporting what it describes as a strong financial performance in the second quarter of this year despite the challenges created by the COVID-19 pandemic.
A required filing with the Municipal Securities Rulemaking Board shows the Mayo Clinic posted a net operating income of $154 million from over $3.2 billion in revenues. The result was an operating margin of 4.8-percent.
"We are grateful for the extraordinary commitment and dedication of the entire staff. Because of their innovative work and sacrifice, we have been able to consistently deliver high-quality care and maintain patient and staff safety during this extraordinary time," says Gianrico Farrugia, M.D., Mayo Clinic's president and CEO.
A Mayo Clinic news release notes the pandemic all but closed its outpatient practice, and elective and nonemergency care was deferred in April. The medical practice reopened in May and stabilized at near-normal patient volumes in June. $300 million in expense reductions through pay cuts and furloughs were implemented during the quarter. The Mayo Clinic also received $173 million in emergency relief funds that helped offset some of the lost revenue and pandemic related expenses. In addition, Mayo directed funds from investments and benefactor support to operations. The news release says, without that, the organization's net operating income would have been only about $4 million for the three month period that ended June 30th.
The regulatory filing shows the Mayo Clinic's revenues were down about $211 million when compared to the second quarter of last year, while its expenses dropped by about $125 million. The healthcare provider's net operating income for the same period in 2019 was about $300 million.
For the first six months of the year, the Mayo Clinic has brought in about $6.44 billion in revenue and has a net operating income of $183 million. That number was over $540 million for the first six months of last year when revenues were close to $6.8 billion.