Farrugia calls 2019 'a year of remarkable growth' as Mayo reports $13.8B in revenue
Mayo Clinic’s net operating income rose to ten figures for the first time ever in 2019, as their annual financial report showed substantial growth for the Rochester-based hospital system.
In a news release issued Tuesday, the Clinic reported total revenue of $13.82 billion, 9.7 percent higher than 2018 and good for a new organizational record. Net operating income rose to $1.06 billion, the first time Mayo’s income could be measured in billions.
The increase in revenue, according to the release, was “driven primarily by strong inpatient, outpatient and surgical volumes” across Mayo Clinic’s network of hospitals. The numbers in the report back up the previous claim; medical service revenue, the main money-maker for Mayo, jumped by nearly a billion dollars from 2018. Even though Mayo’s expenses rose by just over $750 million, the jump in medical service revenue was more than enough to make up the difference.
Mayo Clinic revenue
Mayo also reported a 2.1 percent increase in total hospital inpatients and a 3.6 percent increase in surgical patients from the previous year. Over 1.2 million patients sought care at Mayo Clinic in 2019, representing all 50 states and over 130 countries.
"2019 was a year of remarkable growth and reinvestment in Mayo Clinic's mission,” said Dr. Gianrico Farrugia, Mayo’s president and CEO. “Our exceptional team members will continue to distinguish Mayo Clinic as a truly world-class health care organization."
(Dr. Farrugia has now spent just over a year as the leader of the Clinic; he succeeded Dr. John Noseworthy in January 2019.)
Mayo reported major growth worldwide in 2019 and cited plans to further expand their reach outside of the U.S. The Clinic’s most significant overseas expansion project in 2019 came in the form of a partnership with the United Arab Emirates to open Sheikh Shakhbout Medical City.
"As a global leader in health care, with patients at the center of our work, Mayo Clinic has a critical role to play," said Dr. Farrugia. "We are leading the necessary changes in health care to benefit people worldwide."
Benefactors contributed just under $550 million to the Clinic in 2019, $217 million of that number contributed in cash. Another $500 million of benefactor money was committed to Mayo in 2019, but won’t hit the Clinic’s coffers until various points in the future. $32 million of that number is marked for the Anna-Maria and Stephen Kellen Building, announced last June with plans to start construction later this year.
Mayo finished 2019 with over $10 billion in net assets, over $1 billion more than what they finished 2018 with. 2019 marked the third consecutive year of asset growth for the Clinic, marking a near 30 percent increase from 2017, when they reported just over $7 billion in assets.
Isaac Jahns is a Rochester native and a 2019 graduate of the Missouri School of Journalism. He reports on politics, business and music for Med City Beat.
Cover photo: File / William Forsman
