ROCHESTER, Minn. – The COVID-19 pandemic has presented one of the greatest challenges in Mayo Clinic’s history, but because of exceptional staff work and collaboration, strategic expense reductions and emergency relief funding, Mayo reported a strong second-quarter financial performance.
“We are grateful for the extraordinary commitment and dedication of the entire staff. Because of their innovative work and sacrifice, we have been able to consistently deliver high-quality care and maintain patient and staff safety during this extraordinary time,” says Gianrico Farrugia, M.D., Mayo Clinic’s president and CEO.
Mayo Clinic reported revenues of $3.22 billion in the quarter from April 1 to June 30, with net operating income of $154 million and a 4.8 percent operating margin.
During the second quarter, the pandemic all but closed Mayo’s outpatient practice, and elective and nonemergency care was deferred in April. Expense reductions, including temporary pay reductions and furloughs of staff, also were implemented. This was followed by the reopening of Mayo’s clinical practice in May and stabilization at below but near normal levels of patient volume in June.
Expense reductions totaled $300 million in May and June. In the second quarter of 2020, Mayo Clinic booked $173 million in emergency relief funds, which offset a portion of the lost revenue and expenses associated with significant investments in testing, protective and medical equipment, and unanticipated costs during the COVID-19 pandemic. Mayo is monitoring these dollars closely to ensure the funding is applied appropriately to COVID-19 efforts. Excluding investment and benefactor support for operations, Mayo Clinic would have reported net operating income of $4 million for the quarter.
Though Mayo Clinic has recovered more quickly than projected, the progression of the COVID-19 pandemic and the economic environment remain uncertain and challenging. “While financial results are trending positively, we need to remain vigilant and nimble in our response to COVID-19,” says Jeff Bolton, Mayo Clinic’s chief administrative officer. “We continue to closely analyze all aspects of the pandemic, economy and our performance, allowing us to adapt quickly as the situation evolves.”
Through these unprecedented times, Mayo Clinic’s commitment to compassionate care, patient safety, and sharing its practice, research and educational expertise remains paramount. Mayo is transforming outcomes as a leader in COVID-19 research and testing, with multidisciplinary teams leading research with live viruses, clinical trials, and biological samples. Mayo is developing molecular and antibody tests for the COVID-19 virus and investigating vaccine therapies, and it’s the lead institution for the national Convalescent Plasma Expanded Access Program, which uses the immunity developed in recovered COVID-19 patients to help critically ill patients.
“Jeff and I are incredibly proud of our staff, who have remained focused on Mayo’s values while advancing patient care, research and testing to transform the fight against COVID-19, all while educating the next generation of health care providers and accelerating our plan to transform health care,” says Dr. Farrugia.
Mayo Clinic submitted its quarterly Consolidated Financial Reports, ending June 30, to the Electronic Municipal Market Access (EMMA) website on Thursday, August 20. EMMA is funded and operated by the Municipal Securities Rulemaking Board, the self-regulatory organization charged by Congress with promoting a fair and efficient municipal securities market.
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