Minnesota’s biggest health system appears to be in healthy financial shape. Mayo Clinic ended 2023 with a total net income of $1.084 billion, a more than 80% jump over the prior year.

The Rochester-based health system on Wednesday released its audited 2023 financial report, which showed total revenue of nearly $18 billion, up from $16.29 billion in the prior year.

The health system’s revenue increased by virtually every measure last year, according to the report. There were notable increases in revenue from both medical services, and from grants and contracts, for instance. According to the report, Mayo’s medical service revenue grew to just over $15 billion last year, up from $13.78 in the prior year. Revenue from grants and contracts, meanwhile, ticked up to $703 million in 2023, up from $666 million.

Mayo logged total expenses of $16.86 billion last year.

Last year’s financial performance puts Mayo on good footing ahead of a planned $5 billion upgrade of its Rochester campus.

“By every measure, Mayo Clinic made excellent progress in 2023 towards our goal of creating a better health care system for the United States and globally,” said Mayo Clinic’s president and CEO Dr. Gianrico Farrugia in a news release issued Wednesday.

The release noted that Mayo spent $10.5 billion on staff salaries and benefits last year. The health system enacted a 6% pay bump for more than 60,000 workers in 2023, which marked the largest wage increase in more than two decades, according to the Star Tribune. In 2023, the health system employed 80,221 staffers in total, many of them working from its major campuses in Minnesota, Florida, and Arizona.

Though Mayo is in good financial position, the same can’t be said for some other local health systems. Hospitals across the state are facing tight operating margins. According to the Minnesota Hospital Association data, hospitals in the state had a median operating margin of -2.7% for the first half of 2023.

Some hospitals are even enduring financial losses. Allina Health, for instance, reported a net loss of $317.8 million last year. Fairview Health Services has also been dealing with losses over the last few years.

To be sure, Mayo is much larger than those other systems, and it attracts patients from around the globe. When Mayo bristled at attempts by state lawmakers to mandate nursing staff levels for health systems across Minnesota last year, House Speaker Melissa Hortman acknowledged that Mayo is “an asset known all over the world.”

“There are not other hospitals in the state that have kings and princes flying in to stay to get treatment,” she said on WCCO.

Lawmakers ended up passing a pared-back version of the bill.