The Mayo Clinic experienced a sharp rebound in revenue and net operating income for the second quarter ending June 30. The former rose more than 25% while the latter rose nearly five-fold.
The value of its investments also rose considerably, but the Rochester, Minn.-based hospital system saw operating expenses increase significantly.
While the Mayo Clinic’s report was generally upbeat, it warned that “COVID-19 could still negatively affect the operating margins and financial results of the Clinic, as the duration of the pandemic is unknown.” The system did not provide any financial estimates or projections for the remainder of 2021 or 2022.
Like all providers, the Mayo Clinic was hit hard by the first wave of the COVID-19 pandemic last year when it was required to cancel elective procedures in order to be able to take care of patients. But this year represents a significant rebound, at least through the first half. Results don't include a late summer surge in the delta variant now hammering the nation, which has caused some systems in hot spots to be overwhelmed.
For the second quarter ending June 30, Mayo reported net operating income of $451 million on revenue of just under $4 billion. For the second quarter of 2020, its net operating income was $97 million on revenue of less than $3.2 billion. For the first six months of 2021, Mayo’s net operating income was $694 million on revenue of $7.7 billion, compared to net operating income of $67 million on revenue of $6.3 billion through the first half of 2020.
However, Mayo’s expenses have been rising; they were $3.5 billion for the quarter, up 15.5% from a year ago. For the first half of 2021, they reached $7 billion, up 11.9% from the first half of 2020.
And the system characterized patient volume as mixed, with surgeries topping 2019 and 2020 but with outpatient lower than 2019.