Mayo Clinic Now Employs 41,000 in Rochester
Rochester, MN (KROC-AM News) - Despite the challenges posed by the ongoing COVID-19 pandemic, the Mayo Clinic's financial performance set records last year.
The Rochester-based health care giant's annual financial report shows its net operating income, the key measure of its financial performance, reached $1.2 billion in 2021. Before experiencing a 25-percent drop in net operating income due to the pandemic in 2020, Mayo's previous high mark for its net operating income was just over $1 billion in 2019. When compared to 2020, the Mayo Clinic's net operating income was up 66.5-percent last year and its overall revenues were up 14-percent.
The Mayo Clinic reported a record $15.7 billion in revenue from operations last year, which put its operating margin at a strong 7.7-percent. In 2020, Mayo reported $13.9 billion in revenue and an operating margin of 5.2 percent, while its pre-pandemic report from 2019 also put the organization's revenues at about $14 billion. When funds from investments and gifts are added to the mix, the Mayo Clinic's overall 2021 revenues exceeded its expenses by $3.6 billion, which works out to a 22.7-percent margin.
The financial report shows Mayo's expenses increased by a bit over 11-percent from 2020. Its expenditures on salaries and benefits were up 8.9 percent, while the cost of supplies and services increased by 16.3 percent. Overall, the organization's 2021 expenses totaled just over $14.5 billion.
The Mayo Clinic reported little over $1 billion in funding for research and education programs in 2021, which is up 9.2 percent from 2020. The financial report says about 60-percent of the total, or about $600 million, came from government, foundation, and industry grants. The remainder was from donor gifts and endowments. At the end of last year, the Mayo Clinic's endowment funds had grown by more than 22-percent when compared to the and of 2020 and totaled $6.67 billion.
The global healthcare provider finished last year with more than $18 billion in cash and investments. That is up more than $3.6 billion from the previous year. The report also includes reassuring numbers for Mayo Clinic retirees and those nearing retirement. Mayo added $373 million to its pension plans and those plans enjoyed a $2.1 billion investment return on their assets, which dropped its unfunded pension liability by more than $290 million. At the end of last year, Mayo's pension plans were 98-percent funded compared with 86-percent at the beginning of 2021.
Employment throughout the Mayo Clinic system, which includes the sprawling campus in Rochester, the Mayo Clinic hospitals and facilities in Florida and Arizona, and the Mayo Clinic Health Care System now totals more than 73,000. The report shows nearly 41,000 of those employees work in Rochester.
Mayo reported treating more than 1.4 million patients in 2021, which is also a new record high for the organization. Mayo recorded more than 4.8 million outpatient visits last year and treated about 137,000 surgical patients. Other statistics show the Mayo Clinic cared for 160,000 patients with COVID-19 and tested more than 1.1 million people for the infection. Mayo also administered more than 500,000 COVID-19 vaccinations. Mayo Clinic Laboratories, completed more than 2.4 million COVID-19 tests last year.