Mayo Clinic has a banner year; income up 36 percent in 2014


For Mayo Clinic, 2014 was a very good year.

The hospital and clinic system based in Rochester, Minn., saw its operating income increase by more than one-third last year, which was its strongest performance in more than 25 years.

Mayo released its 2014 financial statement Tuesday. Here are a few pertinent numbers:

  • 2014 operating revenue: $9.76 billion, up 4 percent from 2013
  • 2014 operating income: $834.3 million, up 36 percent from 2013
  • 2014 operating margin: 8.5 percent, highest since 1986

Mayo cared for about 1.3 million patients in 2014.

"Whether viewed through the lens of quality, patient outcomes, research advances, operational performance or sharing our knowledge with the world — by all measures, we had an extraordinary year," said Dr. John Noseworthy, Mayo's president and CEO, in a news release. "That success allowed us to reinvest in our people, our infrastructure and our mission so we can better serve our patients."

The additional income is being put toward a $1.5 billion upgrade to Mayo's information technology systems, which will include new electronic record-keeping, clinic officials said. Mayo also contributed $410 million toward its employee pension plan in 2014, and made other investments in its research and education efforts.

Mayo's main hospital and clinic is in Rochester. It also has facilities throughout southern Minnesota and parts of Iowa and Wisconsin, as well as hospitals in Arizona, Florida and Georgia.

Mayo's performance is particularly strong considering the pressure that many health care providers are facing from insurance companies and government programs to reduce their costs.

Analyst Dan Steingart with Moody’s Investors Service told the Star Tribune Mayo is bucking that trend in part because of its national and international reputation, which attracts more patients.

"The effect of that demand, which tends to be for high-accuity, high-reimbursed services, is something that differentiates them from the rest of the industry," Steingart said, according to the Star Tribune.

In July, Mayo was ranked the No. 1 hospital in the country by U.S. News and World Report. It was the first time it was given that distinction.

Mayo is hoping to attract more international clients, especially from China. In January it launched a collaboration with Hong Kong-based Medisun Holdings in January to provide "health care consulting services," which is expected to increase the number of referrals from China to Minnesota.

Mayo is also the main driver behind the $5 billion Destination Medical Center plan in Rochester. Mayo plans to spend $3 billion on an expansion of its main campus, and expects that will leverage another $2 billion in private investments.

In 2013, the Legislature and Gov. Mark Dayton signed off on more than $500 million in state money for infrastructure improvements in the area.

Mayo is one of Minnesota's largest employers, with a workforce of about 40,000 in the state. Its employment overall is nearly 60,000 people.

Next Up

Image from iOS (96)

Early Saturday fire damages Burger King in Richfield

The fire was reported around 1:15 a.m. Saturday.

Jamal Mashburn Jr. / Gopher Basketball

Maryland hands Gophers first home loss of season

The 17th-ranked Gophers fell to the Terrapins 63-49 on Saturday afternoon.

Alibi Drinkery in Lakeville.

Minnesota Department of Health files lawsuit against Alibi Drinkery

The Lakeville bar has been in the news for defying orders.

Iron Tap snowmobile delivery

This MN restaurant will deliver to your ice house... on a snowmobile

Just in case you work up an appetite fishing on Lake Waconia.

Klobuchar and Trump

Klobuchar reacts to report Trump plotted against his attorney general

The NYT story alleges further tactics to overturn the election.

snow, plow

Snowy Saturday: Here's how much snow is forecast in Minnesota

Snow will reach the metro area by the early afternoon.

Cam Talbot

Wild improve to 4-1 with victory over Dubnyk, Sharks

The 4-1 win gives the Wild four victories in five games to start the season.

Screen Shot 2021-01-22 at 9.08.16 PM

Daughter of MN Supreme Court Justice, Allina Health CEO found dead in Iowa

The 21-year-old was found dead in the parking lot of a sorority, according to police.

Screen Shot 2020-09-04 at 8.42.40 PM

Federal charges: MN marijuana lobbyist threatened U.S. representative

"I want you to be as scared as possible," the voicemail allegedly says.