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Mayo Clinic reports record revenues for 2021

Monday morning release shows a return to pre-pandemic earnings with a record high of $1.2 billion operating income in 2021. That’s a 65 percent jump from $727 million in 2020.

Mayo Clinic
Despite the turbulence of another pandemic year, Mayo Clinic reported record-high revenues in 2021.
Joe Ahlquist / Rochester Post Bulletin

ROCHESTER — In a return to its pre-pandemic earning levels, Mayo Clinic tallied a record high $1.2 billion operating income in 2021.

That’s a 65% jump from $727 million in 2020. Mayo Clinic’s previous highest annual operating income was $1 billion in 2019. The operating margin was 7.7%, the highest since 2014's 8.5%.

Mayo released the 2021 annual report early Monday morning. The clinic’s financial numbers were not bolstered in 2021 by federal financing programs as they were in 2020, when $182 million poured in from the CARES Act.

Total revenue for 2021 was $15.7 billion, which was up 14%, from $13.8 billion the previous year.

"Mayo Clinic staff have persevered heroically through more than two years of the pandemic and provided the highest-quality care for the historic numbers of patients who have trusted us with their health care,” stated Mayo Clinic CEO Dr. Gianrico Farrugia in the report.

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Revenue from medical service was $13.3 billion, up 15.6% from $11.5 billion in 2020.

Medicare accounted for $3.3 billion, up from $2.8 billion in 2020. That’s a 17% increase. Medicaid made payments of $475 million to Mayo Clinic in 2021, up from $373 million in 2020.

The COVID-19 pandemic was a major factor in 2021 as it was in 2020.

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Of the more than 1.4 million patients treated in 2021, “front-line and virtual teams cared for more than 160,000 patients with COVID-19,” according to the report.

Mayo staff tested more than 1.1 million people for COVID-19, administered more than 500,000 COVID-19 vaccinations, and provided more than 19,000 monoclonal antibody infusions.

Mayo Clinic Laboratories, an associated business operation, reported cash flow of $957 million in 2021, an increase from $861 million in 2020.

“Hospital census levels at Mayo Clinic reached new highs in 2021, with a weekly average of more than 2,100 patients ― 8.1% higher than in 2020. Hospital occupancy averaged nearly 92% — significantly higher than in 2019, before the pandemic,” according to the report.

Salaries and benefits for Mayo Clinic’s more than 73,000 employees increased to $8.6 billion, up from $7.9 billion in 2020. That’s an 8.8 percent jump.

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Jeff Kiger tracks business action in Rochester and southeastern Minnesota every day in "Heard on the Street." Send tips to jkiger@postbulletin.com or via Twitter to @whereskiger . You can call him at 507-285-7798.

Jeff Kiger writes a daily column, "Heard Around Rochester," in addition to writing articles about local businesses, Mayo Clinic, IBM, Hormel Foods, Crenlo and others. The opinions of my employer do not necessarily reflect my opinions. He has worked in Rochester for the Post Bulletin since 1999. Send tips to jkiger@postbulletin.com or via Twitter to @whereskiger . You can call him at 507-285-7798.
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