ROCHESTER — Mayo Clinic reported “strong financial performance” for the first quarter of 2025, despite a decline in a few indicators of financial success.
The clinic reported $5.1 billion in revenue for the quarter. Meanwhile, contributions dropped by 43% and revenue from grants declined by 3.6% compared to the same quarter last year.
ADVERTISEMENT
The numbers come from Mayo Clinic's “unaudited condensed consolidated financial reports” for the quarter ending March 31. The reports were posted on the Electronic Municipal Market Access website on Monday.
Some details from the reports:
- Total revenue climbed 7.8%, to $5.1 billion (from $4.7 billion in the first quarter of 2024);
- Expenses increased 8.2%, to $4.73 billion;
- Among expenses, costs for facilities increased at the highest rate, 19.3%, to $290 million.
- Salaries and benefits increased by 4.4%, to $2.68 billion.
Mayo Clinic’s income — revenue minus expenses — increased by 2.75%, to $373 million. That's $10 million more than the $363 million reported in the first quarter of last year.
“Driven by our enduring commitment to put the needs of the patient first, Mayo Clinic made significant strides in the first quarter of 2025 to Cure, Connect and Transform health care for people everywhere,” according to Mayo Clinic’s summary of its “Management Discussion and Analysis” document attached to the financial report. “Strong financial performance enabled Mayo Clinic to invest in our staff, physical and digital infrastructure, and technologies to accelerate and drive the transformation of Healthcare.”
Revenue from contributions dropped to $85 million in the first quarter, compared to $149 million during the same quarter in 2024. Mayo Clinic acknowledged the change in its analysis.
“Contributions available for operating activities decreased from 2024 to 2025 due to an increase in gifts directed to non-operating activities,” stated Mayo Clinic in the report.
Non-operating investments labeled as “noncurrent” also saw a steep decline of 103% for the quarter.
ADVERTISEMENT
“Noncurrent and other items include portions of philanthropic contributions and investment income not available to support operating activities, specific deferred compensation and other charges,” according to the report. “The decrease is largely driven by non-operating investment returns during 2025, which were an $18 million net loss compared to a $554 million net gain for the same period in 2024.”
Revenue from “grants and contracts” also dipped in the quarter by 3.6%, to $188 million.
Mayo Clinic did not respond to questions about the decreases in donations, investments or grants.
Net medical revenue, which accounts for 84.8% of total revenue, was up by 9.4% to $4.3 billion, including $264 million in revenue from Mayo Clinic’s external lab.
Patient and treatment metrics marked increases across the board. Admissions were reported as 34,315 for the quarter, compared to 2024's 31,994 and 2023’s 29,926. Patient days tallied were up by 6.2% to 198,163. That’s an increase from 186,508 days in 2024 and 179,323 days in 2023.
Looking ahead to the future, Mayo Clinic reported plans to invest in construction, particularly its massive Bold. Forward. Unbound organization-wide expansion.
Under “Commitments and Contingencies,” the unaudited report included the statement that the estimated costs of “various construction projects in progress related to patient care, research, and educational facilities totalled $7.48 billion, “all of which is expected to be expended over the next three to five years.”
ADVERTISEMENT
Capital expenditures for the first quarter of 2025 totaled $339 million, which was slightly up from $332 million in 2024.
The Trust Project
