Mayo’s Operating Profits Climb 55%; CEO Talks Strategy
Mayo Clinic said this week that its 2013 net operating income, or earnings from ongoing activities, rose about 55 percent to $612 million.
The Rochester-based health care system reported an operating margin of 6.5 percent, which topped its typical target of 4 to 6 percent. Revenues, meanwhile, grew by 6 percent to $9.4 billion, and expenses climbed 4.3 percent to $8.8 billion.
Mayo Clinic also said that it served 1.2 million unique patients at its facilities, provided diagnostic tests to 4.1 million at its medical labs, and served 7 million patients through its Mayo Clinic Care Network. New patient appointments at its Rochester campus grew by 15 percent last year.
“The strong commitment of our entire organization has allowed us to respond successfully to unprecedented change in health care,” Mayo President and CEO John Noseworthy said in a statement. “We have changed the very definition of Mayo Clinic and stayed true to our core mission and values.”
In conjunction with the release of its latest financial results, Mayo posted a video in which Noseworthy highlights some of the key challenges the company (and industry) is facing, as well as some of 2013's accomplishments. Among other things, he noted Optum Labs, a health care research center founded by Mayo Clinic and UnitedHealth Group's Optum Health subsidiary, which recently attracted new national partners. He also called out plans to transform Minneapolis' troubled Block E complex into Mayo Clinic Square.
Noseworthy also recently spoke to Twin Cities Business for its “Interview Issue,” which features Q&A profiles with 28 of Minnesota’s top CEOs, Fortune 500 executives, and thought leaders. Read the Noseworthy interview here.
And TCB's Editor in Chief Dale Kurschner recently sat down with Noseworthy for a series of video interviews, which can be viewed below.
On the Future of the Health Care Industry
On Helping to Fund the Destination Medical Center
On Working with Insurers to Cut Costs and Improve Quality
On Dealing with the Affordable Care Act