By Tara Bannow | February 19, 2019
Despite an investment loss in 2018 that mirrors some of its peers, not-for-profit Mayo Clinic managed to keep its income from current activities stable.
Rochester, Minn.-based Mayo’s investment results fell sharply in 2018 year-over-year. The system reported a $369 million investment loss compared with a gain of $595 million in 2017. Over the same period, income from current activities totaled $706 million in 2018, compared with $707 million the previous year.
Mayo is in good company. Not-for-profit giant Kaiser Permanente saw a 71% drop in non-operating income last year as it also weathers volatile investment markets.
Mayo Chief Financial Officer Dennis Dahlen said the system’s long-term returns are still very strong.
“Our portfolio is designed to weather a down year, which is what 2018 was,” he said.
Dahlen said Mayo did adjust its investment allocation, pulling a little money out of the equities market once it decided the markets were trending lower near the middle of the year.
More broadly, Mayo posted $12.6 billion in revenue in 2018, up 5% from just under $12 billion in 2017. The system’s expenses rose 5.5%, from $11.3 billion in 2017 to $11.9 billion in 2018.
The system generated $799 million in net cash from operating activities in 2018, up slightly from $795 million in 2017.
