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Diving summary:
- The Mayo Clinic ended 2025 with revenue 13% higher than the previous year as the nonprofit health system was boosted by higher volumes and demand for health care services, according to earnings documents released this week.
- The Rochester, Minnesota-based nonprofit health system said increases in its outpatient, inpatient and surgical volumes accounted for the increase in revenue compared to the previous year.
- Still, as income increased, so did expenses. Increased May volumes boosted spending on supplies and services, contributing to a more than 8% year-over-year increase in operating costs, according to the health system.
Diving information:
Mayo has consistently posted earnings results that have risen each year as the health system recovers from pandemic-era staffing shortages.
Like other large hospital operators, Mayo was hampered by outsourced labor expenses and labor shortages that limited its ability to take on more capacity in the wake of the coronavirus pandemic, when massive attrition plagued the healthcare industry. In 2022, Mayo’s revenue was cut in half from the previous year as the health system faced workforce challenges.
Since then, the health system’s revenues have steadily improved its finances as it worked to improve recruitment and retention. The nonprofit organization invested in professional development opportunities, wellness services and increased salaries. As a result, it was able to attract staff to accommodate higher volumes: Mayo admissions last year were almost 15% higher compared to 2023.
In 2025, Mayo posted revenue of $1.5 billion, a 13% increase from the previous year. The nonprofit attributed its growth to strong volumes, including nearly 7% growth in admissions.
However, expenses increased as volumes increased.
Expenses totaled $20 billion in 2025, close to outpacing its growth in operating income. Salaries and benefits made up the majority of its costs, reaching $11.2 billion. Mayo said growth in admissions contributed to an increase in expenses.
The nonprofit gave an update on its multi-year, multi-million dollar initiative titled “Bold. Forward. Limitless.” that prioritizes physical and digital investments across the health system, including the integration of artificial intelligence.
The initiative committed significant spending to Mayo’s $1.4 billion in capital spending last year, including projects to expand and modernize bed towers in Mankato, Minnesota, and La Crosse, Wisconsin, and other investments.
