The health system — which posted $11 billion in revenue in 2016 — paid $14 million for state and federal income taxes in 2016 and $24 million in 2015, according to a 2016 independent auditor’s report cited by the PB.
Mayo pointed to several provisions in the tax package that trigger a tax increase:
- Taxes on certain employee benefits, such as transit passes, parking, shuttles, bicycle commuting reimbursement and access to Mayo’s on-site fitness facilities, will make up 25 percent of the $10 million increase
- A 1.4 percent excise tax on college endowments will apply to Mayo Clinic since it is classified as an academic medical center
- A 21 percent excise tax on any amount in excess of $1 million in annual compensation paid to the five highest-paid employees applies to Mayo, yet the final bill excludes compensation paid to professionals who provide medical services
Mayo said a few last minute changes to provisions in the tax package lessened its cost. These include the exclusion of medical professionals from the compensation tax, a change that allows nonprofit hospitals to access tax-exempt municipal bond financing for capital projects, and certain employee benefits — including tuition assistance and dependent care assistance — remaining tax-free.
Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit
