By Robert King / May 23, 2022
Mayo Clinic posted a $227 million net loss for the first quarter of the year, the latest hospital system to grapple with a decline in investments and a surge of labor expenses.
While it posted a net loss, the health system did report $142 million in net income for the quarter, for a 3.6% operating margin, according to its earnings report released late Thursday. It generated $3.9 billion in revenue for the quarter.
Several systems have posted losses in the first quarter due to heightened labor expenses as well as other cost pressures such as inflation.
“Workforce shortages and corresponding labor cost inflation, persistent supply chain disruptions and shortages, a higher interest rate environment and capital market volatility have all taken center stage for management attention,” the earnings report said.
Mayo added that the first quarter’s performance does reflect “long-term plans for revenue diversification, digitization of healthcare when appropriate, using platforms to accelerate innovation and investing in the treatments of complex and serious clinical care.”
