Mayo Clinic's earned earnings remained relatively flat last year even after making more than $724 million in capital project investments and contributing more than $339 million to its employee pension plan.
In all, Mayo's operating income totaled $706 million on $12.6 billion in revenue in fiscal 2018. That's down about a tenth of a percent from its income of $707 million on $12 billion in revenue in 2017. Officials blamed the decrease on the change in investment markets.
Mayo credited revenue increases to strong inpatient volumes, including from growth in the number of transplants, surgery inpatients and hospital admissions. They also pointed to revenue from diversified sources such as Mayo Clinic Laboratories and commercialization activity through Mayo Clinic Ventures. Net income was $554 million, down from $1.4 billion in 2017—credited to changes in the investment market from 2017 to 2018, officials said.
The nonprofit health system reported $78 million in charity care in 2018, up 8.3% from $72 million in 2017. In all, it reported providing $589 million in care to people in need if it counts $511 million in unpaid portions of Medicaid and similar programs.
The results came amid a massive switch of Mayo's electronic health record to a single EHR system using the Epic system, the largest such project in Mayo's history. It also expanded its Mayo Clinic Care Network, an affiliation of 40 health systems that collaborate on clinical care with Mayo.
In all, 1.2 million patients sought care at Mayo's campuses in Minnesota, Arizona, and Florida as well as other health system access points.
The health system also reported:
- $1.1 billion went toward Mayo's research and education funding in 2018, up 8.1% over 2017. That included $560 million from external sources including government, foundations and industry grants.
- It invested toward more than $1 billion in capital projects including a $648 million expansion of its Phoenix campus, a $190 million expansion of its Gonda Building in Rochester, a new $144 million parking garage in Florida and $86 million toward various campus expansions elsewhere. They also spent $365 million maintaining and replacing existing equipment and technology.
- Mayo accrued nearly $30 million in income taxes and paid more than $95 million in MinnesotaCare taxes and almost $13 million in sales and use taxes and $28 million in property taxes.
Fundraisers raised $504 million in contributions to support Mayo programs, an uptick of nearly 19% over the prior year, including a $200 million gift from Jay Alix, a Mayo Trustee and patient for whom the Mayo Clinic Alix School of Medicine is now named.