Mayo Clinic Finances Gained Strength in the 3rd Quarter
Rochester, MN (KROC-AM News) - Despite the continued economic impacts of the COVID-19 pandemic, the Mayo Clinic today reported strong financial results for the third quarter this year.
A key measure of the healthcare provider’s financial performance is net operating income, which totaled $288 million for the three-month period. That is up $134 million from the second quarter of this year and is $9 million above the net operating income reported in the third quarter of last year.
"Due to our staff's perseverance and innovation, we have been able to continue providing the patient care, the extraordinary research, and the training and education that we're known for," says Gianrico Farrugia, M.D., Mayo Clinic's president and CEO. "Our resilience is a testament to the hard work of our staff and the enduring strength of our values."
The financial report says the Mayo Clinic's revenue total for the third quarter was $3.65 billion. That compares favorably with the second-quarter revenue total of $3.2 billion and the revenues reported for the third quarter in 2019 of $3.42 billion.
Since the beginning of the year, the Mayo Clinic is reporting $9.98 billion in revenues, which is down 1.5-percent when compared to the first three quarters of last year. Net operating income for the first nine months of this year is down 51-percent from 2019 at $355 million due to the huge COVID-19 related losses that were incurred in the first quarter this year.
The Mayo Clinic noted the third-quarter results reflect $156 million in expenses for payments to its employees to restore wages and benefits lost during the first months of the pandemic. Mayo has also fully repaid $915 million in Medicare advance payments that arrived in April to help it weather the financial storm caused by COVID-19. The financial statement also indicates Mayo anticipates that it will have to return a portion of the $237 million in funding and credits it received through the federal CARES Act and state programs before the end of this year.