The Mayo Clinic's surplus has shrunk following another year of higher expenses.
The Rochester, Minn.-based system has been trying to cut costs by cutting jobs and benefits, and outsourcing some of its staff. That worked in 2014, but Mayo reported Thursday that its expenses were up 9.7% in fiscal 2015. That's driven by an 8.5% increase in salaries and benefits, and a 14.5% uptick in supplies and services over the previous fiscal year.
Mayo did not break out the number of employees in its 2015 report.
Mayo has invested nearly $10 million into Rochester's Destination Medical Center, a local economic development initiative to create a health and wellness campus that also includes retail, dining, sports, arts and convention space. But the project, which also benefited from state funding, has yet to break ground. Minnesota Public Radio reported this month that the developer is "still finalizing details."
Meanwhile, Mayo has been upgrading its own hospitals, adding four floors to St. Mary's Hospital in Minnesota. The system also recently opened a building in Phoenix that houses a proton beam therapy program.
Mayo's admissions fell 0.5% in 2015 over 2014. Patient days, however, rose 2.6%. Mayo reported a 0.4% rise in outpatient visits in 2015.
The system's operating surplus dropped 36.9% in 2015 compared with 2014. Last year, the system reported an operating surplus of $526 million on $10.3 billion in revenue, compared with an operating surplus of $834 million on $9.8 billion in revenue in the prior-year.
Its operating margin was 5.1% in 2015, down from 8.5% the previous year.
