Mayo Clinic's finances look strong
Mayo Clinic enjoyed healthy growth in revenue and income in the first half of 2014, according to documents obtained by the Post-Bulletin.
Many other U.S. health-care systems saw a similar boost, with some analysts attributing it to a one-time boost from the Affordable Care Act.
The clinic files unaudited quarterly financial reports on the public Electronic Municipal Market Access website because of the $300 million in municipal bonds it has issued to investors.
The report for the first half of 2014 shows total revenue of $4.77 billion, up from $4.55 billion in the first six months of 2013.
Even more dramatic, its income was $347 million in the first half of the year, up from $197.4 million in the same period in 2013. Mayo is a nonprofit, so the earnings are reinvested into the company and not taken as profits.
Clinic officials declined to discuss the increase or anything else connected to the quarterly reports.
"Mayo Clinic publicly reports on our operational and audited financial results once a year," stated spokesman Karl W. Oestreich. "Mayo ... will only be providing comment once a year when we release our year-end operational and financial results."
The increase matched similar quarterly financial bumps at public hospital chains, such as Tenet Healthcare, Universal Health Services and HCA Holdings.
Analysts point to the millions of people who have signed up under the Affordable Care Act and have sought long-delayed medical care as driving the spike. However, experts are divided about what the long-term impact will be, once the early pent-up demand works through the system.
Hospital Corporation of America's CEO Milton Johnson said on a conference call with analysts that the number of uninsured patients has dropped, as overall patient volume has increased.
Lifepoint, which runs 100 hospitals, credits the Affordable Care Act with boosting their second quarter numbers by $13 million.William Carpenter, Lifepoint's CEO, told analysts on his own conference call that, "We're now halfway through the first year of expanded coverage under the Affordable Care Act and, so far, our experience has been very positive."
Overall, Mayo Clinic's second quarter report of unaudited finances showed increases in most categories, with the exception of salaries and benefits.
Salaries and benefits were down by $33 million for the combined first six months of 2014 compared to the previous year. Mayo Clinic reported those costs were $2.957 billion from January to the end of June in 2013. That number dropped to $2.924 billion for the same period in 2014.
Revenue from net medical services grew to $4 billion in the first half of 2013, up from$3.895 billion in the same period in 2013.
In addition, funding from grants and contracts climbed to $189.8 million for the first six months of 2014, from $186.8 million for that period in 2013.