As of the July, 2022, release via CMS

MAYO CLINIC HOSPITAL ROCHESTER

CMS id: 240010
1216 SECOND STREET SW, ROCHESTER MN 55905. County: OLMSTED
System: MAYO CLINIC ROCHESTER
CBSA: Rochester, MN

The 1,252-bed, acute-care hospital had $1,046,782,317 in net service to patients*, with a total profit margin of 32.08764% in fiscal year 2021, the latest year available.
It spent 0.86% of its operating expenses on uncompensated care and reported $0 in Medicaid shortfall.

* For more about Net Service to Patients and operating revenue, please the finance section below.

Note: Medians are from acute-care hospitals with "complete" fiscal years. For more about how we calculated medians and cost reports in general, please click here.

Details

	2017	2018	2019	2020	2021
# of days in fyear	365	365	365	366	365
Ownership	gov	gov	gov	gov	gov
Acute beds Median	978 118	903 118	963 119.5	876 118	904 119
Total beds Median	1,297 162	1,220 162	1,318 162	1,220 162	1,252 163.5
FTEs Median	8,471.37 788.06	8,527.25 793.42	8,795.62 806.03	8,582.62 787.61	9,202.26 804.34

Finances As they appear in worksheet G3 of the cost reports.

Note: Net Patient Revenue is considered operating revenue, which means Net Service to Patients is considered operating profit. Click here for more about cost report financials

Hospital cost reports are an enormously complicated dataset. There are whole organizations and an offical CMS vendor dedicated to helping researchers work with the data.
It's important to understand that hospital financials in cost reports are not organized in the same as other sources such as annual financial reports to bond holders.

The biggest difference is the concept of operating revenue and profit. Net Service to patients (NS2P), which is the sum of net patient revenue minus operating expenses, is considered the equivalent of operating profit according to the Medicaid and CHIP Payment and Access Commission (MACPAC). See the last paragraph of "Primary Data Sources" on page 55 of Annual Analysis of Disproportionate Share Hospital Allotments to States (PDF).

That would make Net Patient Revenue = operating revenue.

All this makes things challenging when comparing what's reported in cost reports to other sources. It becomes clearer when you consider that, beyond the purpose of reimbursement, cost reports are a tool for policymakers trying to understand the financial situation of a hospital doing the tasks specific to hospitals.

In other words, while a facility with a division that formulates drugs might include earnings from that as operating revenue in their corporate annual result, this is not central to the operations of a hospital caring for patients and so it is counted as "other income." (See below the financials section for more on "other income")

The healthcare consulting firm HMP, in a former partnership with Modern Healthcare, did develop a formula for estimating operating revenue closer to what one might find in other sources. We no longer use this for the following reasons:

The measure was not widely used beyond HMP and Modern Healthcare. Many hospitals had their own internal estimates of operating revenue and profit.
Because of this, there was confusion when reporting operating results for individual hospitals. There was often pushback when a facility's internal numbers did not match what Modern Healthcare was reporting.
The formula includes revenue from portions of the "other income" section, which may also include non-operating revenue. HMP themselves point out in a caveat on their site that they cannot exclude all non-operating revenue from their measure.

HMP's operating measure has proven problematic in the past for our reporting and the partnership with them ended years ago. It's best to not use a measure that we alone cannot defend.

	2017	2018	2019	2020	2021
Net patient revenue ? Median	2,313,337,795 150,932,746	2,584,637,894 158,950,878	2,845,128,883 168,696,998	2,837,714,279 163,454,693	3,317,828,896 186,589,412
Operating expenses Median	1,671,625,610 149,311,209	1,783,155,008 156,110,414	1,918,659,706 164,890,568	2,029,418,237 166,516,854	2,271,046,579 180,120,888
Net income from service 2 patients (NS2P) ? Median	641,712,185 -964,173	801,482,886 -643,601.5	926,469,177 -116,254	808,296,042 -5,025,862	1,046,782,317 -1,284,564
NS2P margin ? Median	27.74% -0.62	31.01% -0.29	32.56% 0.18	28.48% -5.07	31.55% -0.88

Range* of Net Service to Patient (NS2P) margins

= NS2P margin for MAYO CLINIC HOSPITAL ROCHESTER compared to all** acute-care hospitals, from CMS cost reports.
Note: NS2P is considered operating margin by MACPAC. The chart below is interactive: click or touch to see more.

* Data range does not show outliers, which fall beyond the minimum and maximum of the range.
** From cost reports with complete fiscal years. Number of acute-care hospitals available to calculate medians:

2017	2018	2019	2020	2021
3,157	3,092	3,050	3,052	2,566

	2017	2018	2019	2020	2021
Other income* Median Click here to show/hide details	17,092,484 5,089,215	21,093,976 4,572,541	22,618,564 5,268,134	20,603,988 13,092,619	18,265,165 12,369,236
⊳ Line 6: Contributions ? ⊳ Median	4,875,830 224,999	6,209,177 199,009	4,982,226 206,870.5	7,250,762 194,343	3,034,491 249,496
⊳ Line 7: Investments ? ⊳ Median	1,863,130 299,524	217,939 188,688.5	2,851,615 370,813	3,013,436 309,361.5	4,111,698 375,329
⊳ Line 8: Revenue from telephone service	NULL	NULL	NULL	NULL	NULL
⊳ Line 9: Revenue from tv and radio	--	--	--	--	--
⊳ Line 10: Purchase discounts	0	0	0	0	0
⊳ Line 11: Rebates and refunds of expenses	0	0	0	0	0
⊳ Line 12: Parking lot receipts	0	0	0	0	0
⊳ Line 13: Revenue from laundry and linen service	0	0	0	0	0
⊳ Line 14: Revenue from meals sold to emplyees and guests	6,370,894	8,944,782	9,858,081	7,134,926	8,065,465
⊳ Line 15: Revenue from rental of living quarters	120,781	128,000	128,400	111,138	27,825
⊳ Line 16: Revenue from sale of medical and surgical supplies	0	0	0	0	0
⊳ Line 17: Revenue from sale of drugs to other than patients	0	0	-7,450	0	0
⊳ Line 18: Revenue from sale of medical records and abstracts	0	0	0	0	0
⊳ Line 19: Tuition (fees, sale of textbooks, uniforms, etc.)	630,808	719,676	651,572	428,228	75,675
⊳ Line 20: Revenue from gifts, flowers, coffee shops, canteen	2,752,472	4,409,516	3,739,710	2,412,530	1,430,908
⊳ Line 21: Rental of vending machines	0	0	0	0	0
⊳ Line 22: Rental of hospital space	0	0	0	0	0
⊳ Line 23: Gov appropriations ? ⊳ Median	0 1,017,693	0 983,261.5	0 1,173,286	0 1,987,202	0 1,597,664
⊳ Sum Line 24	478,569	464,886	414,410	252,968	1,519,103
Total income ? Median	658,804,669 6,586,430	822,576,862 6,767,106	949,087,741 8,419,950	828,900,030 8,094,175	1,065,047,482 15,162,888
Non-operating expenses Median	98 146,289.5	0 164,857	14,881 89,880.5	0 106,761	-5,426,420 31,473.5
Net income Median	658,804,571 6,043,842	822,576,862 5,845,112	949,072,860 7,606,259	828,900,030 7,283,041	1,070,473,902 14,957,241
Net margin Median	28.26965% 4.62%	31.56798% 4.42%	33.09472% 5.16%	28.99957% 5.2%	32.08764% 9.25%

* About "Other income": Other income, or line 25 in worksheet G3, is the sum of lines 6 through 24. It includes three lines that are considered non-operating revenue - contributions, investments and government appropriations. Medians are included for these three lines. It also contains items that are not central to providing healthcare, such as revenue from parking or gift shops.
"Sum Line 24" is a special case. Called "Other (specify)" in the cost reports, CMS allows for this line to be "subscripted," or divided into sublines like 002400, 002401, 002402. And hospitals do that, up to 100 lines, to detail income (and sometimes negative returns) that are otherwise not covered in the previous "other" lines. Therefore, "Sum Line 24" is the sum of all the lines 24.

Range* of total profit (loss) margins

= Total margin for MAYO CLINIC HOSPITAL ROCHESTER compared to all** acute-care hospitals, from CMS cost reports.
The chart below is interactive: click or touch to see more.

2017	2018	2019	2020	2021
3,157	3,092	3,050	3,052	2,566

Medicare revenue

Inpatient and outpatient revenue

	2017	2018	2019	2020	2021
All inpatient revenue Median Click here to show/hide details	525,018,663 23,241,334	513,318,135 23,709,545	504,874,572 24,248,380	484,947,895 22,858,541	528,476,451 23,620,613
"All inpatient revenue" is made up of any Medicare payments for routine inpatient, swingbed SNFs, TEFRA, IPF, IRF, inpatient long-term care, CAH and inpatient SNF facilities. Medians are only calculated when there are sufficient facilities reporting revenue.
⊳ Routine inpatient revenue ⊳ Median	509,959,237 21,577,146	499,497,668 22,041,594	492,193,418 22,722,063	470,058,440 21,570,441	513,346,786 22,140,684
⊳ Swingbeds ⊳ Median	0 --	0 --	0 --	0 --	0 --
⊳ Tax Equity and Fiscal Responsibility Act payments (TEFRA) ⊳ Median	0 --	0 --	0 --	0 --	0 --
⊳ Inpatient psychiatric facility (IPF) ⊳ Median	6,908,380 1,845,420	7,350,781 1,757,392	5,683,291 1,738,842	6,601,220 1,510,463	7,685,448 1,393,140
⊳ Inpatient rehabilitation facility (IRF) ⊳ Median	8,151,046 3,535,627	6,469,686 3,746,588	6,997,863 3,782,288	8,288,235 3,865,578	7,444,217 3,983,889
⊳ Long-term care hospital (LTCH) ⊳ Median	0 --	0 --	0 --	0 --	0 --
⊳ Critical-access hospitals ⊳ Median	0 --	0 --	0 --	0 --	0 --
⊳ Skilled-nursing facilities (SNF) ⊳ Median	0 1,203,033	0 1,215,295	0 1,313,657	0 1,365,298	0 1,179,746
All outpatient revenue Median Click here to show/hide details	189,913,245 11,160,864	223,360,126 11,987,345	221,964,585 12,926,866	220,651,175 11,884,480	267,035,904 13,145,163
"All outpatient revenue" is made up of any payments for routine outpatient, HHA, CMHC, rural health and other federally-qualified health clinics. Medians are only calculated when there are sufficient facilities reporting revenue.
⊳ Routine outpatient revenue ⊳ Median	189,913,245 10,918,923	223,360,126 11,706,976	221,964,585 12,615,917	220,651,175 11,458,116	267,035,904 12,776,716
⊳ Home Health agencies (HHA) ⊳ Median	0 1,282,808	0 1,407,728	0 1,341,512	0 1,407,046	0 1,476,867
⊳ Community mental health clinics (CMHC) ⊳ Median	0 --	0 --	0 --	0 --	0 --
⊳ Rural health clinics ⊳ Median	0 618,038	0 697,279	0 690,232	0 684,010	0 670,558
⊳ Other federally qualified health clinics ⊳ Median	0 --	0 --	0 --	0 --	0 --

Other payments

Item	2017	2018	2019	2020	2021
Graduate Medical Education (GME) Median	86,609,466 3,284,314	87,358,798 3,250,551	83,041,277 3,386,837	75,185,484 3,360,806	74,238,138 3,508,953
Disproportionate-share hospital (DSH) Median	2,695,874 594,888	2,422,755 595,761	4,268,402 577,894	2,479,823 542,168	3,796,566 549,667
Outlier Median	38,201,088 582,572	54,823,864 538,116	6,686,289 212,434	6,081,042 126,559	6,995,537 139,139

Uncompensated care

Item	2017	2018	2019	2020	2021
Medicaid shortfall Median	30,738,860 3,662,910	41,644,154 3,730,911	29,819,443 4,081,319	45,674,789 4,643,908	0 4,389,147
Charity care Median	18,152,120 2,654,636	22,458,218 2,940,659	23,458,550 3,380,215	17,509,784 3,488,738	12,392,208 3,233,405
Uncompensated care (UCC) Median	27,505,053 5,147,790	34,992,166 5,337,617	34,203,555 5,711,082	20,282,317 5,923,418	19,467,581 5,508,107
UCC as a % of operating expenses Median	1.65% 3.24	1.96% 3.12	1.78% 3.21	1.00% 3.3	0.86% 2.86
Total shortfall/UCC Median	58,243,913 9,489,989	76,636,320 9,424,297	64,022,998 10,120,158	65,957,106 11,171,337	19,467,581 10,133,851

Labor costs

	2017	2018	2019	2020	2021
Total salaries Median	628,231,227 52,142,039	654,031,936 54,485,252	685,504,504 57,395,589	690,749,714 58,830,919	766,292,753 61,722,907
Salaries as a % of operating expenses Median	49.30 36.68	48.31 36.56	47.13 36.37	45.65 35.93	45.02 35.24
Intern, resident salaries* Median	0 2,598,592	0 2,686,824	0 2,753,773	0 2,937,156	0 2,909,848
Contract intern, resident salaries* Median	0 1,251,927	0 1,186,494	0 1,204,885	0 1,279,653	0 1,469,317
Contract adjusted salaries, direct-care Median	155,478,163 1,449,244	272,713,537 1,475,986	289,086,161 1,563,078	286,784,628 1,721,954	13,158,361 2,991,828
Contract hours, direct-care Median	3,521,222.00 22,725	5,677,504.00 23,018.5	5,312,202.00 24,503.48	5,162,036.00 25,026.5	83,498.00 33,786
Contract wages, direct-care Median	44.15 64.67	48.03 64.53	54.42 65.06	55.56 68.97	157.59 88.94

* in an approved program

Return to top

Cost reports are self-reported by the facility, are subject to revision and should be considered preliminary.

* Net Service to patients (NS2P) equals net patient revenue minus operating expenses. NS2P is considered the equivalent of operating profit according to the Medicaid and CHIP Payment and Access Commission (MACPAC). See the last paragraph of "Primary Data Sources" on page 55 of Annual Analysis of Disproportionate Share Hospital Allotments to States (PDF).

About medians

Medians are calculated from reports with "complete" fiscal years, or reports with fiscal years of at least 300 days and no more than 420 days.

In cases where there are fewer than 50 values reported, medians are not calculated. For childrens' hospitals, it's when fewer than 20 are reported.

Web app by Tim Broderick | email.