Mayo Clinic closed out 2023 with $18B in revenue, 6% operating margin

Rochester, Minnesota-based Mayo Clinic reported revenue of $17.9 billion in 2023, outpacing expenses by over $1 billion and resulting in what the health system called a “mission-sustaining” 6% operating margin.

The revenue figure, which compared with $16.3 billion in 2022, included investments totaling $536 million which were used to support current operating activities, the health system recently reported in financial disclosures.

The organization saw its net medical service revenue grow 8.8% year over year to $15.1 billion.

Though revenue outpaced expenses, the health system's expenses were up 7.4% compared to 2022, totaling $16.9 billion for the year. Mayo Clinic said it welcomed 14,000 new staffing roles into the system in 2023, up almost 5% from 2022.

Mayo Clinic invested in $10.5 billion in staff salaries and benefits in 2023, according to the health system.

The health system also involved itself in a record-breaking 2,500 clinical trials during the calendar year and put $1.18 billion toward capital expenditure projects.

“By every measure, Mayo Clinic made excellent progress in 2023 towards our goal of creating a better healthcare system for the United States and globally,” Gianrico Farrugia, M.D., Mayo Clinic president and CEO, said in a statement.

During 2023, Mayo Clinic announced the largest capital investment in its history with its "Bold. Forward. Unbound. in Rochester" project which will create innovative spaces to research developing healthcare technologies. It also continued its investment in its multiuser Mayo Clinic Platform, using data to accelerate healthcare innovation.

The health system, which also operates major campuses in Arizona and Florida as well as in international locations, cared for approximately 1.3 million patients from more than 130 countries in 2023.