Mayo Clinic Net Income Up 82% in 2023 at Over $1.1 Billion

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Rochester, MN (KROC-AM News) - Mayo Clinic saw its net operating income rise more than 80% in 2023.

The number represents the difference between Mayo Clinic's revenues and expenses and is considered the best measure of the Rochester based healthcare provider's financial performance. According to a required federal regulatory filing, Mayo saw its net operating income rise from from $641 million in 2022 to $1.168 billion last year.

The filing with the Municipal Securities Rulemaking Board shows Mayo Clinic's revenues increased from a bit over $16.3 billion to just over $18 billion in 2023. That represents a jump of just over 10%

Meanwhile, Mayo was able to keep its expenses in check. The filing shows they rose about 7.5% to nearly $16.7 billion. The expense total for 2022 was just under $15.7 billion. The organization's largest expense category is salaries and benefits, which rose 5.4% to almost $9.7 billion for 2023.

Overall, Mayo's operating margin was around 6%.

The report also shows that healthy gains on Wall Street benefited Mayo Clinic's bottom line. After reporting a net loss of nearly $1.4 billion on unallocated investment returns in 2022, Mayo reported net earnings of $788 million in 2023.

A news release issued by Mayo Clinic also indicates it incurred $1.18 billion in capital expenditures last year and provided more than $1 billion in philanthropic funding. Mayo says that total includes $608 million in outright support.

Mayo Clinic is reporting that its workforce grew to more than 80,200 staff members, who contributed to the care of approximately 1.3 million patients from 130 different countries. The news release indicates Mayo Clinic "welcomed about 14,000 staff into new roles in 2023, a 4.9% increase from 2022."

The unaudited report was filed with the online Electronic Municipal Market Access site, a service of the Municipal Securities Rulemaking Board. The report is required because of municipal bonds sold by Mayo to finance various economic development projects.