Mayo Clinic posts highest operating margin in more than 25 years


Rochester, Minn.-based Mayo Clinic reported operating income of $834.3 million in fiscal year 2014, a 36.3 percent increase over its operating income of $612.1 million the previous year.

Mayo's revenue also increased in fiscal 2014, growing to nearly $9.8 billion compared to $9.4 billion in FY 2013.

The system's 8.5 percent operating margin for fiscal 2014 was this highest it has been since 1986, according to a Star Tribune report.

Kedrick Adkins Jr., CFO of Mayo, said one of the contributors to Mayo's success last year was strong patient volume, according to the Star Tribune.

The system's expenses remained almost flat in fiscal 2014, only increasing 1.3 percent.

However, Mayo did suffer a hit on its unallocated investment returns, which fell from $433.1 million in fiscal 2013 to $229.7 million in fiscal 2014.

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