Mayo surplus falls to $88M as costs rise

Rochester, Minn.-based Mayo Clinic reported its operating surplus fell to $88 million in the first quarter of fiscal 2015, down from $155 million a year ago.

The health system's revenue increased in the first quarter, growing to $2.5 billion, up from $2.4 billion in the same period of fiscal 2014, with the system's net medical service revenue increasing 6.4 percent to $2 billion.

However, the system's expenses also grew, increasing 9.2 percent to nearly $2.4 billion in the first quarter of fiscal 2015. The system's supply costs jumped to $647 million, up from $557 million in the same period of last year.

The rise in expenses was a change for Mayo, as the system's expenses remained almost flat in fiscal 2014.

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