Steadily recovering clinical volumes helped Mayo Clinic post $324 million in net operating income on just over $4 billion in total revenue during its third fiscal quarter ending Sept. 30, the system reported in its latest quarterly filings.
The quarterly results translate to an 8.1% operating margin, a 12.5% year-over-year increase in net operating income and a 10.1% year-over-year increase in total revenue, according to the system.
At the same time, expenses for the quarter increased 9.8% year over year to nearly $3.7 billion and included an 8.3% jump in salaries and benefits costs, a 12.5% increase in supplies and services expenses and $91 million in expenses related to the recognition of Mayo employees' pandemic efforts.
These increases were greater across the board when comparing the first nine months of 2021 to 2020.
According to the filing, 2021 net operating income up to Sept. 30 increased 186.8% from $355 million to just over $1 billion, revenue grew 17.4% to $11.7 billion and expenses increased 11.2% to about $10.7 billion.
Mayo Clinic’s operating margin was 8.7% across the nine-month period. After nonoperating income and other one-time adjustments, net income for the nine months grew 273.3% over last year to nearly $2.9 billion.
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“Mayo Clinic's third-quarter 2021 financial report continues a trend of strong revenue and income performance,” the system’s management wrote in the filing. “This is a direct outcome of the efforts of our committed staff who have been on the front lines caring for COVID-19 patients, developing lifesaving treatments, and conducting the testing and research that is essential to finding therapeutics.”
The Rochester, Minnesota-based nonprofit has so far seen widespread volume increases across outpatient visits (14.9%), surgical cases (13.9%), admissions (6.3%) and patient days (11.4% increase) compared to 2020. Outpatient visits and admissions are still down in relation to the same period in 2019.
Mayo Clinic said its cash and investments total $17.6 billion as of Sept. 30, a $3.2 billion increase from the same time last year that was buoyed by about $1.6 billion in investment gains. The system has 402 days of cash on hand.
Mayo Clinic’s numbers were greener than some of those from its nonprofit system contemporaries, each of which generally outlined a trend of rising volumes and expenses.
Providence, for instance, posted a net operating loss of $311 million for its third quarter as reimbursement gains didn’t keep pace with growing labor costs. Kaiser Permanente reported a $1.6 billion profit for the quarter, a drop-off from the $3 billion of the previous quarter that it primarily attributed to the delta variant surge and other expenses.