- Mayo Clinic reported its operating income totaled $1.2 billion last year as the nonprofit hospital system treated a record number of patients. The income figure, which includes philanthropy and investment returns, is up from $728 million in 2020, when many patients delayed care due to COVID-19 concerns.
- Rochester, Minnesota-based Mayo said it cared for more than 1.4 million patients in 2021, including more than 160,000 people with COVID-19.
- The nonprofit system said its revenue increased 14% in 2021, to $15.7 billion. Expenses rose by 11% year over year, to $14.5 billion, primarily due to pandemic-related costs and higher clinical volumes. Income from routine operations was $481 million, for a 3.2% margin.
Mayo Clinic's standout 2021 results come at a time when many nonprofit hospitals have faced pressure on their operations from a surge in COVID-19 cases in the second half of the year. Rising labor costs, fueled by staffing shortages, have been among the biggest challenges straining hospital budgets.
Nonprofit chains including Ascension, CommonSpirit Health and Baylor Scott & White reported weakened operating results in the last quarter of 2021, citing escalating labor and supply costs as the culprit.
In reporting its annual results, Mayo Clinic said it is giving eligible staff members a 4% minimum salary increase this year, and the system will continue to evaluate its market competitiveness.
"Mayo Clinic staff have persevered heroically through more than two years of the pandemic and provided the highest-quality care for the historic numbers of patients who have trusted us with their health care," CEO Gianrico Farrugia said in a statement.
The system cared for more than 2,100 patients a week on average in 2021, a new high and up 8% from the year before. Hospital occupancy averaged almost 92%, which was significantly higher than levels before the pandemic, the organization said.
Achievements in the past year included providing more than 1 million virtual outpatient appointments and enrolling over 8,500 patients in remote monitoring, Mayo Clinic said.
The hospital system said it spent more than $1 billion on research in 2021, with Mayo and donor gifts covering 40% of the cost and the rest paid for by external sources such as grants. Clinical trials conducted at Mayo increased to 2,889 in 2021, while the number of investigational new drugs developed by its researchers climbed to 87.
The system invested a record $880 million in capital projects last year to improve its facilities and advance its research and education goals. Mayo also contributed $11.5 million in 2021 to nonprofit organizations that work on community health needs and disparities in the communities where it operates.