Mayo's annual revenue climbs to $12.6B amid move to Epic EHR
Posted on: Monday, February 25, 2019 By: KorchekStaff
Mayo Clinic reported net income of $706 million on revenue of $12.6 billion in 2018. That's compared to 2017, when Mayo posted net income of $707 million on revenue of $11.99 billion, according to the Post Bulletin.
Over the last several years, Mayo has been implementing a new EHR system. The systemwide Epic implementation is part of a multiyear technology upgrade, which Mayo officials estimate encompasses $1.5 billion worth of investments.
Mayo's financial position and patient volume held steady last year, despite the investment in the new EHR system and lost revenue due to the transition, according to the Post Bulletin.
CFO Dennis Dahlen estimates Mayo missed out on $50 million in revenue in 2018 because it cut back on the volume of scheduled healthcare services for several weeks as the new EHR system went live, according to the Star Tribune.
"In the overall scheme of things, it's not that material, but there was a footprint on revenue from the implementation," he said.
An increase in donations and income from Mayo's for-profit units, such as Mayo Clinic Ventures, helped offset the lost revenue. During 2018, donations to Mayo were up 19 percent year over year, while income from its for-profit operations climbed 9 percent, according to the Post Bulletin.
Becker's Hospital Review
Tuesday, February 19th, 2019