Rochester, Minn.-based Mayo Clinic eclipsed $1 billion in net operating income in 2019, the not-for-profit health system reported Tuesday.
Mayo reported net operating income of $1.06 billion on revenue of $13.82 billion, up 72% from $617 million of net operating income on $12.6 billion of revenue in 2018.
More than 1.2 million patients—from every state and more than 130 countries—received care at Mayo, marking a 2.1% increase in inpatient admissions and a 3.6% increase in surgery admissions compared with 2018. More than a third of Mayo patients coming to Rochester are either from out of state or international.
"As a global leader in healthcare, with patients at the center of our work, Mayo Clinic has a critical role to play," Dr. Gianrico Farrugia, Mayo Clinic president and CEO, said in prepared remarks. "We are leading the necessary changes in healthcare to benefit people worldwide."
Mayo is amid the largest public-private economic development project in Minnesota's history. The Destination Medical Center will be home to new apartments, offices, hotels, restaurants and transit options that the project's leaders hope will be a boon to the area economy.
It will be partly funded by $585 million from taxpayers over 20 years as well as $5.6 billion in private investment. Of that total, $3.5 billion will come from Mayo itself, as the healthcare powerhouse aims to attract new patients, add capacity and lure bioscience companies and other potential partners.
Meanwhile, Mayo continues to reap the rewards of its diversified revenue sources including its global reference laboratory operations and its commercial venture arm. Its diversified revenues reached $1.29 billion in 2019, an increase of 8.1% over 2018.
Mayo touted its efforts to expand its behavioral health services as well as affordable housing capacity, among other initiatives.
But the system only reported delivering $590 million in uncompensated care, including $96 million in charity care and $494 million in unpaid portions of Medicaid and indigent care programs. That was up from $78 million of charity care offered in 2018. The $96 million represents a mere 0.75% of Mayo's 2019 expenses.
A recent study found that not-for-profit hospitals with the healthiest finances provide disproportionately less free care to the uninsured and underinsured.