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.
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.
