Mayo Clinic overcame a bad start to 2022 this year with a strong first quarter, the nonprofit health system reported Thursday.
The Rochester, Minnesota-based company expects net income of $420 million during the first three months of 2023 after posting a loss of $177 million a year ago. Operating income increased 4.9% to $149 million. Revenue increased 8.8% to $4.27 billion. Expenses increased 9% to $4.12 billion, including 7.7% higher for salaries and benefits and 11.3% higher for supplies and services. Cash and investments totaled $17.65 billion, an increase of 2% from the fourth quarter, largely due to investment gains.
Mayo has been embroiled in a conflict with Minnesota legislators and other providers in the state over legislation that would require patient care units to form committees with caregivers and executives to determine staffing levels.
However, the State Legislature is Willing to Exempt Mayo Clinic after the health system threatened to pull billions of dollars in investment from Minnesota—a power play that has angered smaller providers in the state.