Key Mayo Clinic Financial Indicator Down 88% in First Quarter
Rochester, MN (KROC-AM News) - The latest quarterly financial report issued by the Mayo Clinic shows its operations were doing quite well before the pandemic hit.
A 1st quarter management discussion and analysis filed by the Mayo Clinic with the federal Municipal Securities Rulemaking Board indicates Mayo's net operating income was over $150 million for January and February. During March, as the new coronavirus crushed the nation's economy, Mayo experienced a net operating loss of $124 million but still managed to finish the first quarter of 2020 with net operating income of $29 million. That represents a drop of 88-percent from the first quarter in 2019.
The Mayo Clinic's overall revenues in the first quarter totaled just over $3.2 billion, which was down 3.8-percent from last year. Prior to the arrival of the pandemic, Mayo's revenues up over 8-percent when compared with the first two months of 2019.
At the same time, the Mayo expenses continued to grow. Overall costs for the quarter were up 2.7-percent from a year ago. Staffing expenses rose only about a half percentage point, while supplies and facilities costs were both up over 6-percent.
The filing also shows the Mayo Clinic took a big hit in the stock market. It listed $10.55 billion in cash and investments on its balance sheets at the end of March. That was down almost $650 million from the start of the year and includes the impact of $746 million in investment losses.
The unaudited report was filed with the online Electronic Municipal Market Access site, a service of the Municipal Securities Rulemaking Board. The report is required because of municipal bonds sold by Mayo to finance various economic development projects.