Mayo Clinic Income Falls After Upping Staff, Capital Project Investments
Mayo Clinic’s income last year fell $308 million from its record-high results in 2014, largely due to increased staffing, pension costs and capital project investments, the medical institution said Monday.
Rochester-based Mayo reported 2015 income of $526 million from $10.3 billion in revenue—amounting to a 5.1 percent margin. The institution said it typically aims for an annual operating margin around 5 percent to “support its research and education missions, fund salary increases, invest in the pension fund, and provide a source of capital for investing in the future.”
Although Mayo’s revenue had a year-over-year rise of 5.7 percent, the institution’s income dropped primarily because of its growing workforce. Mayo, the state’s largest employer, created more than 4,000 jobs in 2015, which brought its total staff in the six states of operation to roughly 64,000.
The institution put $505 million into its employee pension plan and spent another $600 million in 2015 on projects such as the Mayo Clinic Square (a sports medicine facility and practice area for the Timberwolves and Lynx) and a new radiation therapy program in its Rochester headquarters.
As a destination hospital, Mayo provided direct care for more than 1.3 million people last year. During that period, benefactors, many of whom were patients, donated $277 million to fund Mayo Clinic programs in practice, education and research.
“When we look at these numbers , we see people—our patients and our dedicated employees,” Mayo CEO Dr. John Noseworthy said in a statement, adding that he remains “confident in our people and direction” in 2016 and beyond.
In 2014, Noseworthy was chosen as TCB's Person of the Year.