Mayo Clinic Reports Another Drop in Net Income
Rochester, MN (KROC AM News) - Mayo Clinic is reporting another drop in its net income from its 2016 operations.
Mayo has released a summary of its 2016 financial operations and it shows net income of $475 million, down about $50 million from the year before. This is the lowest total since 2012.
Mayo is reporting a 6 ½ percent increase in its 2016 revenue as it climbed to $11 billion.
Mayo’s expenses rose $700 million to $10 ½ billion. Expenses rose by about a billion dollars in 2015.
Benefactors contributed almost $300 million to fund Mayo Clinic programs in practice, research and education. Additionally, benefactors provided $216 million in future commitments.
For the second straight year, Mayo’s capital expenditures exceeded $600 million.The patient total of 1.3 million was the same as the previous two years.
Mayo’s staff at all its sites grew by about 3,000 to 63,000 (excluding residents, fellows and students).
Here is a detailed report on Mayo's 2016 financial operations.
In 2016, Mayo Clinic contributed $6.7 million in cash and in-kind donations to local communities. Mayo provided $629.7 million in care to people in need. This total includes $83.3 million in charity care and $546.4 million in unpaid portions of Medicaid and other indigent care programs for people who are uninsured or under-insured.
“We remain dedicated in supporting local community vibrancy and economic development,” says Jeff Bolton, vice president, Administration, Mayo Clinic. “From environmental stewardship efforts, community wellness initiatives and outreach to reduce health disparities among our most vulnerable citizens, Mayo Clinic is committed to giving back to our communities.”
A nearly 2-million-square-foot life science research campus in downtown Rochester was announced in 2016. It will be the centerpiece of Discovery Square, one of six sub-districts in the Destination Medical Center (DMC) development district. Mayo will collaborate on the project with M.A. Mortenson Company, a Minneapolis-based and family-owned development and construction services firm. Discovery Square will serve as a point for physicians and scientists to come together with businesses and entrepreneurs to accelerate advancements in medical innovation and technology for critical advances in patient care. Construction is set to begin in the fourth quarter of 2017. Mayo Clinic continues its commitment to the DMC initiative, as evidenced by the $9.5 million invested in integrated operational support since the DMC plan was introduced.
Across the nation, health care providers are facing a challenging environment, says Kedrick Adkins Jr., chief financial officer, Mayo Clinic. Patients often are sicker and older. Reimbursement from government programs, such as Medicare and Medicaid, is often insufficient to cover the cost of care.
“We are confident that our keen expense management and continuous quality improvement activities will continue to improve patient care, advance medical research and educate medical professionals to meet changing patient needs,” Adkins says. “We strive for a carefully balanced approach that supports Mayo Clinic’s mission of offering hope and healing to the sickest of the sick, while assuring economic viability for the future.”