Despite furloughs and pay cuts in the early months of the pandemic, Mayo Clinic finished the year with $727 million in profits in 2020.
Rochester-based Mayo Clinic’s 2020 financial report also showed $13.9 billion in total revenue, which is 1.5% higher than in 2019. The clinic cited investments, philanthropic gifts and alternative revenue sources for this growth despite the pandemic.
While the net profit was down on the $952 million made in 2019, it nonetheless marks a remarkable turnaround given it was projecting a $3 billion loss early in the pandemic, when elective surgeries were shut down in an effort to contain the virus's spread.
But things began looking up as summer approached. Furloughed workers began returning in August and pay cuts stopped by mid-July for most staff, months ahead of when the clinic anticipated.
With restrictions on elective surgeries being lifted, the clinic also saw patient volumes increase to 85-90% of normal levels by mid-June.
Medical service revenue was down 0.9% from 2019, but the clinic cited alternative revenue like Mayo Clinic Laboratories and Mayo Clinic Ventures and Business Development, which brought in $1.53 billion in revenue.
Investment income also grew 9.1% for the clinic.
Philanthropic gifts were up 6.9% from 2019, totaling $587 million. Total gifts secured in 2020 were more than $1 billion counting future commitments.
With finances doing better, Mayo Clinic was able to return $156 million of CARES Act funding in December. But the clinic did retain $182 million in CARES Act funding in the early months of the pandemic.
Last year, Mayo Clinic also performed 3.1 million COVID-19 tests for patients across the country. More than 1.3 million patients received care at Mayo Clinic.