The Mayo Clinic finished 2009 with its strongest operating margin in five years after breaking even the prior year. Nearly flat expenses helped the Rochester, Minn.-based system swing its operating income to $333.2 million for the year that ended in December from nothing in 2008.
The gain, on revenue that grew roughly 5% to $7.6 billion, delivered an operating margin of 4.4%, the largest since 5.6% in 2004. Mayo's salary and benefit expense grew 3.7% in 2009 to $4.8 billion. The system's payroll shrank by 1,034 people to 55,930 in 2009, largely through attrition, according to the Mayo Clinic. Supply and service expenses dropped by 5.9% to $1.68 billion.