Mayo Clinic’s operating income drops 48.7%

It credited management expenditure decrease steps with cost savings of $300 million in May and June. Those procedures included income reductions, suspension of worker retirement matches and short-term workforce decreases. © Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this material?

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Friday, August 21st, 2020
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In the three-month period ended June 30, Mayo Clinic recorded revenue of $3.2 billion, compared to $3.4 billion in the very same three-month period in 2019. In the second quarter, Mayos net medical service profits struck $2.4 billion, a 16.2 percent dip from the very same quarter one year prior..

Mayo Clinic got $303 million in federal and state relief funding in the second quarter. The health system recognized $173 countless the funding, and said it is deferring recognition of the staying funds till the monetary effect of the pandemic is clear.

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At the end of the three-month period ended June 30, Mayo Clinic had $10.3 billion in net properties, consisting of donor limitations..

Mayo likewise said it paid back in July the $915 million in Medicare advance payments got in April.

” This performance covered a remarkable duration that consisted of the near closure of outpatient clinical practice and a deferment of all optional and nonemergent care in April, the fast resuming of the practice in May, and stabilization at near normal levels of volume in June. The receipt of provider relief funds as well as expense reductions also played significant roles in the quarters performance,” Mayo Clinic said.

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Rochester, Minn.-based Mayo Clinic taped a net operating earnings of $154 million in the second quarter of 2020, a decrease of 48.7 percent compared to the very same duration in 2015, according to recently released financial files.

It credited management expenditure decrease procedures with savings of $300 million in May and June. Those measures included salary decreases, suspension of worker retirement matches and temporary workforce reductions. In May, 9,800 staff members were furloughed or had their hours changed, and in June, 8,600 employee were either furloughed or had their hours adjusted, according to the report..

Mayo Clinics costs decreased 2.1 percent in the second quarter of this year, to $3.1 billion..