- Mayo Clinic reported net operating income of $324 million for the third quarter, a nearly 13% improvement from the prior-year period when the industry saw patient volumes drop because of coronavirus fears.
- Mayo posted a robust operating margin of 8% for the quarter ended Sept. 30 as patient volume metrics improved and as revenue grew 10%, outpacing expense growth during a quarter in which rising costs challenged many systems due to COVID-19 cases and heightened labor demands.
- Overall, Mayo Clinic posted net income of $832 million for the quarter, a nearly 21% margin.
The delta variant continued to strain many hospitals during the third quarter as hospitalizations climbed into early September.
As a result, the demand for labor skyrocketed, and spending weighed down operating incomes for nonprofit systems like Providence Health and CommonSpirit.
However, it appears Mayo Clinic was able to navigate the challenging third quarter as it held expense growth to 9.8%, while revenue growth exceeded 10%.
For the quarter, revenue tied to delivering medical services grew 9% as patients returned for care.
The system reported across-the-board volume growth in many key categories for the first nine months of the year. For example, outpatient visits, surgical cases, admissions and even patient days increased year over year.
And some categories are outpacing 2019 metrics including surgical cases and patient days, a signal that patients may be sicker since they're staying longer.
The results come as the U.S. heads into the winter and holiday season, forcing more people indoors and raising concerns about the nation's immunity to the deadly disease.
In an attempt to prevent another COVID-19 surge, the FDA on Friday gave the green light for boosters to all adults. The decision comes one week before the Thanksgiving holiday, and as hospitalizations among the fully vaccinated are on the rise, according to Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases.