ROCHESTER — Mayo Clinic is “pleased with the strong start” of 2023, reporting a 4.9% jump in operating income, to $149 million for the first quarter, compared to the same period in 2022.
Also compared to the first quarter of 2022, total revenue was up by 8.8%, to $4.27 billion, and expenses also climbed by 8.9%, to $4.12 billion for the quarter, which ended March 31.
On Thursday, Mayo Clinic posted an unaudited consolidated financial report for the first quarter on the Electronic Municipal Market Access website.
“Mayo Clinic is pleased with the strong start represented by these first quarter results. Strong volumes, investment gains and favorable expense management all contributed to the quarter’s performance,” according to a statement in the report. “In parallel, we continue to advance the elements of our Bold. Forward. strategic plan with its vision to Cure, Connect and Transform health care.”
While the quarter compared favorably with 2022, the operating income was 38% below the $243 million reported for the first quarter in 2021.
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Total U.S. medical service revenue increased by 8.9%, to $3.64 billion, with most areas on the upswing. Two segments remained the same between 2022 and 2023, with “External Lab” holding steady at $227 and “Senior Care and Nursing Home” reporting $4 million revenue for both years.
Contract sources remained the primary payers for medical services at $2.13 billion, or 61% of the total amount in the first quarter of 2023. Medicare accounted for $977 million of 26% of the total. Medicaid brought in $136. While the amounts paid by all three of those sources increased compared to the previous year, “Other, Including Self Pay” dropped to $401 million from $417 million in 2022.
All measures of patient volumes were higher than in 2022. Outpatient visits increased by 5.9%, to 1,266,976. Surgical cases were up by 9.9%, to 36,876. Admissions grew slightly by 2.6%, to 29,897. Patient days also edged up by 0.9%, to 179,324 days for the quarter.
Most categories of Mayo Clinic’s revenue sources were up compared to 2022 except “Contributions” and “Other.” “Contributions” dropped by 37.2%, to $49 million, from $78 million in 2022. The “Other” revenue stream faded just slightly by 0.7%, to $275 million, from $277 million in 2022.
In keeping with the national labor shortage, Mayo Clinic’s expenses for “Salaries and Benefits” climbed by 7.7%, to $2.44 billion, up from $2.26 billion in 2022. Salary costs accounted for 59% of the total expenses for the quarter, just as they did in 2022.
Under “Commitments and Contingencies,” Mayo Clinic reported the total cost to complete “various construction projects in progress” at $1.59 billion, which it expects to spend in the next three to five years.
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