- Despite recent efforts to cut expenses, the Mayo Clinic's costs rose in the first quarter of 2015.
- Increases in salaries and benefits and supply costs were enough to offset the health system's 5.7% revenue gain.
- Salaries and benefits went up by 7%; supply costs rose by around 16%.
Although the Mayo Clinic has made an effort to reduce expenses by outsourcing medical transcription positions and increasing employee cost-sharing for health benefits, its operating surplus is down $67 million from the first quarter of last year, according to Modern Healthcare. Revenue increased from $2.4 billion to 2.5 billion.
However, the health system has also invested heavily in Rochester's Destination Medical Center, is working on major upgrades at St. Mary's Hospital and recently held a grand opening for its new Richard O. Jacobson building, which will begin providing proton beam therapy to patients this June.