Mayo Clinic’s Financial Health Is Excellent

Mayo Clinic reports its best operating margin in five years.The Mayo Clinic ended 2009 with it best operating margin in five years after breaking even in 2008. With expenses virtually flat, the Rochester, MN-based healthcare system reported that its operating income totaled $333.2 million for the year ending December 31, 2009.

Mayo Clinic, which recovered nearly all of its assets lost during the recession as its investments rebounded and its pension and retiree benefits limited its liability by $1 billion, according to CFO Jeff Bolton.  Capital spending, which was cut during the recession, will slowly return to historic levels.  Bolton said that Mayo spent $361 million on capital projects in 2009 compared with $500 million to $700 annually in normal years.

“This past year, we had the opportunity to demonstrate that we can thrive in a difficult economic environment because we have one focus — keeping the needs of the patient first,” said John Noseworthy, M.D., the Mayo Clinic’s president and CEO.  “Our strong operational performance in 2009 is due to the significant effort and innovation of our staff.”

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