Mayo’s operating margin is also down year-over-year to 3.5 percent in the first quarter of 2017 from about 4 percent in the same period last year.
Mayo recorded a 9 percent increase in expenses this past quarter, largely driven by a nearly 10 percent increase in spending on salaries and benefits.
However, the nonprofit health system’s revenue is up 8.7 percent compared to the first quarter of 2016, from $2.69 billion to $2.91 billion.
Overall gains after the system’s first quarter totaled $268 million, up significantly from a $32 million loss in the first quarter of 2016. This is due in part to better returns on investments, which totaled $147 million in three months ending March 31, compared to $163 million in losses for the first three months of 2016.
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