Mayo generates $154M in operating income in Q2 despite sharp drops in volume due to COVID-19

Mayo Clinic has weathered a sharp drop in patient volume to generate $154 million in net operating income in the second quarter of the year.

The system reported revenues of $3.2 billion in the second quarter in its latest earnings report released last week.

Mayo’s outpatient practice was “all but closed” alongside deferred elective and nonemergency care, a release said. But the system added that Mayo’s clinical practice reopened in May and had stabilized at or below pre-pandemic levels in June.

“While financial results are trending positively, we need to remain vigilant and nimble in our response to COVID-19,” Mayo Chief Administrative Officer Jeff Bolton said in a statement. “We continue to closely analyze all aspects of the pandemic, economy and our performance, allowing us to adapt quickly as the situation evolves.”

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Mayo reported $173 million of COVID-19 emergency relief funds that offset a “portion of the lost revenue and expenses associated with significant investments in testing, protective and medical equipment and unanticipated costs during the COVID-19 pandemic.”

Health systems have relied on a $175 billion fund passed by Congress as part of the CARES Act to help stay afloat and survive the volume declines caused by COVID-19.

If not for the investment and “benefactor support for operations,” Mayo said it would have posted a net profit of $4 million for the quarter.

Other major hospital systems such as HCA and Community Health Services have pointed to the relief funds as pivotal to generating profits in the quarter.