Mayo reports $157M Q3 income, salaries and benefits increase 3.5%

Rochester, Minn.-based Mayo Clinic reported a strong third-quarter operating margin despite challenges from workforce shortages and inflation.

Five details from the health system's financial report:

1. Mayo reported net operating income of $157 million on $4.12 billion for the third quarter of 2022. The health system's operating margin at the quarter's end was 3.8 percent.

2. Operating expenses hit nearly $4 billion for the quarter as well, a 7.1 percent increase over the same period last year. Salaries and benefits were up 3.5 percent to $2.3 billion.

3. For the nine months ending Sept. 30, Mayo reported operating expenses were up 9.5 percent to $11.6 billion due to inflationary trends and supplementing the workforce with contractors. Contract labor expenditures were up 47 percent in the third quarter and 75 percent for 2022 overall.

4. Mayo's cash and investments hit $16.9 billion by the end of the quarter, a $1.2 billion drop since the end of last year. The health system attributed the decrease primarily to investment losses.

5. Mayo reported 348 days cash on hand for the quarter, down from 403 at the end of 2021. The health system core balance sheet continues to have AA rating parameters.


Copyright © 2023 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars