Mayo Clinic Reports Strong Financial Performance in 2023
Mayo Clinic Ends 2023 with Record Net Income, Plans $5 Billion Upgrade
Mayo Clinic, Minnesota’s largest health system, has reported a strong financial performance for 2023, with a total net income of $1.084 billion, representing an impressive 80% increase over the previous year. The Rochester-based health system released its audited financial report for 2023, revealing a total revenue of nearly $18 billion, up from $16.29 billion in the prior year.
The financial report highlighted significant increases in revenue from medical services and grants and contracts. Mayo’s medical service revenue grew to over $15 billion in 2023, up from $13.78 billion in the previous year, while revenue from grants and contracts increased to $703 million, up from $666 million.
Despite total expenses of $16.86 billion, Mayo’s strong financial performance in 2023 positions the health system well for its planned $5 billion upgrade of its Rochester campus. Mayo Clinic’s president and CEO, Dr. Gianrico Farrugia, expressed satisfaction with the progress made in 2023 towards the goal of creating a better healthcare system.
The health system’s investment in its staff was also highlighted, with $10.5 billion spent on staff salaries and benefits in 2023. Mayo implemented a 6% pay increase for over 60,000 workers, marking the largest wage increase in over two decades. With a total of 80,221 employees across its major campuses in Minnesota, Florida, and Arizona, Mayo continues to be a significant employer in the healthcare industry.
While Mayo Clinic’s financial position remains strong, other local health systems are facing challenges. Hospitals across the state are experiencing tight operating margins, with some reporting financial losses. Allina Health reported a net loss of $317.8 million in 2023, while Fairview Health Services has also been dealing with losses in recent years.
Despite these challenges, Mayo Clinic’s global reputation and patient base set it apart from other health systems in the state. Lawmakers recognized Mayo’s international appeal when considering legislation to mandate nursing staff levels for health systems in Minnesota. Mayo’s unique position as a healthcare destination for patients from around the world was acknowledged by House Speaker Melissa Hortman.
As Mayo Clinic continues to lead in healthcare innovation and patient care, its strong financial performance in 2023 underscores its commitment to excellence and growth in the industry.