Rising Expenses Eat Into Mayo Clinic’s Bottom Line
Rochester, MN (KROC-AM News) - The Mayo Clinic saw its net operating income drop by more than $100 million in the first quarter of this year.
The number, referred to by the Mayo Clinic in a required quarterly regulatory filing as income from current activities, was about $142 million for the first three months of this year. The total from the first quarter of last year was a record-high $243 million.
The drop was due to expenses rising faster than revenues. Mayo Clinic's expenses in the first quarter totaled $3.785 billion, which was up about $357 million from the first quarter of last year. The documents indicate Mayo's expenses for salaries and benefits rose $155 million from last year and the cost of supplies increased by about $188 million. Mayo's revenues for the quarter approached $4 billion and were up $256 million when compared to the revenues from January, February, and March 2021.
Mayo Clinic's investment portfolio also took a hit. The filing shows the organization's net unallocated investment return was a loss of $474 million. That figure from the first quarter of last year was a gain of $454 million. Overall, the filing indicates Mayo's net assets dropped in value by $177 million after rising by more than $850 million in the first three months of 2021.
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.