May 22, 2020

Mayo Clinic is Not Immune from Financial Fallout due to COVID-19

After a record year in 2019, Mayo Clinic’s net operating income plummeted by 88% in the first quarter of 2020 as a result of a precipitous reduction in services and near closure of its outpatient clinics due to the COVID-19 pandemic.  Net operating income fell to $29 million, compared to $241 million for the same quarter in 2019.  In addition, at the end of 2019, Mayo Clinic had $11.9 billion in investments and cash, dropping to $10.55 billion at the end of March 2020. Mayo Clinic disclosed that it had accessed $1 billion in short-term funds and a working capital balance of $537 million to provide liquidity.  About 23,000 employees across all Mayo sites have been furloughed or placed on reduced hours, with plans to call employees back as patient demand increases again.