Rising costs contribute to lower surplus at Mayo
The Mayo Clinic, which diligently cut expenses over the past year, started to see those costs creep up again in the first quarter of 2015.
The Rochester, Minn.-based system reported increases in salaries and benefits as well as supply costs that offset a 5.7% gain in revenue for the period ended March 31. Salaries and benefits rose 7%, while supply costs jumped 16.2% at the 24-hospital group.
Mayo did not break out operating statistics, such as patient volume, in its financial filing.
Over the past year, Mayo has made a number of moves to curb expenses. It eliminated nearly 200 medical transcriptionist positions, instead opting to outsource the department. It also began offering scaled-down health benefits with more cost-sharing for employees.
Still, the system reported a decrease in its operating surplus in the first quarter, which fell to $88 million from $155 million in the same period last year. Revenue rose to $2.5 billion from $2.4 billion in the year-ago period.