Mayo Clinic quadruples operating income in Q2

Mayo Clinic's financial and operating performance was strong for the second quarter, with revenue gains offsetting higher expenses, according to financial documents released Aug. 19. 

Rochester, Minn.-based Mayo's revenue totaled $3.99 billion in the second quarter of this year, up more than 26 percent from the same period a year earlier. Net medical service revenue was up nearly 38 percent year over year. 

The health system, which has hospitals in Minnesota, Arizona, Florida, Wisconsin and Iowa, said more surgeries were performed at its facilities in the second quarter of this year than in the same period of the previous two years. Outpatient visits and hospital admissions were up from 2020 but lower than in 2019. 

The health system's operating expenses climbed 15.5 percent year over year to $3.5 billion in the second quarter of this year. Mayo saw expenses increase across several categories, including supplies and salaries and benefits. 

Mayo ended the second quarter of 2021 with operating income of $451 million, up from $97 million a year earlier. 

After factoring in nonoperating income and one-time adjustments, net income for the second quarter was $1.25 billion, up from $403 million in the same period of 2020. 

Mayo was in a strong financial position before the COVID-19 pandemic hit. The system had a record performance year in 2019, with revenue of $13.8 billion and operating income of more than $1 billion. The system's finances temporarily suffered after it deferred elective care in March 2020, and Mayo closed out last year with operating income of $728 million, a 23.5 percent year-over-year decrease. 

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