Mayo Clinic latest health system to report hit by volatile equities market

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. 


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Chris J. Stewart

Chris currently serves as President and CEO of Surgio Health. Chris has close to 20 years of healthcare management experience, with an infinity to improve healthcare delivery through the development and implementation of innovative solutions that result in improved efficiencies, reduction of unnecessary financial & clinical variation, and help achieve better patient outcomes. Previously, Chris was assistant vice president and business unit leader for HPG/HCA. He has presented at numerous healthcare forums on topics that include disruptive innovation, physician engagement, shifting reimbursement models, cost per clinical episode and the future of supply chain delivery.

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