Mayo Clinic’s Operating Income Jumped 60% in 3rd Quarter

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Rochester, MN (KROC-AM News) - Mayo Clinic lost money again on Wall Street in the third quarter this year but its losses were far smaller than those reported a year ago.

A required regulatory financial filing by Minnesota's largest private employer shows it lost $112 million on its investments over the three-month span that ended in September. In the third quarter of 2022, Mayo Clinic reported a $474 million loss on investment.

In addition to the smaller losses on investments, Mayo also reported a significant improvement to its “bottom line.” Net operating income from July through September rose from $184 million last year to around $296 million this year. That figure was comparable to the net income reported by Mayo Clinic for the second quarter of this year.

The filing also shows Mayo Clinic's revenues outpaced rising expenses in the third quarter. Overall revenues exceeded $4.44 billion, which was up about 7.3% when compared to the third quarter in 2022. Mayo Clinic expenses climbed just over 4.8%  from last year and totaled about $4.15 billion. The report indicates Mayo’s expenses tied to salaries increased about 2.4% to just over $2.38 billion.

For the first nine months of this year, Mayo Clinic's net operating income is up to nearly $750 million, compared with $483 million in 2022. Mayo's revenues have increased nearly 9% this year and have reached nearly $13.2 billion. Meanwhile, expenses have climbed 7% to nearly $12.5 billion.

The unaudited report was filed with the online Electronic Municipal Market Access site, a service of the Municipal Securities Rulemaking Board. The report is required because of municipal bonds sold by Mayo to finance various economic development projects.