Surging patient demand propelled the nonprofit health system to a sharp rebound in operating performance.
Mayo Clinic delivered a dramatic financial upswing in the third quarter of 2025, with its operating income soaring by more than 250% year-over-year on the strength of improved patient volumes.
For the three months ended September 30, the Rochester, Minnesota-based health system reported $193 million in operating income, blowing away the $55 million recorded over the same period last year. Beyond the operating earnings, Mayo’s income from current activities, including philanthropy and investment returns, reached $442 million for the quarter, nearly doubling the $232 million earned in 2024.
Total operating revenue for the quarter rose to $5.5 billion, up from $4.9 billion in the prior-year period, with net medical service revenue growing by 10.2%, reflecting strong demand across outpatient, surgical, and hospital services, Mayo highlighted.
Through the first nine months of 2025, Mayo’s outpatient visits rose 4.5%, surgical cases increased 4%, and admissions surged 7.2% compared to last year.
Operating expenses in the third quarter also increased by 8.5% to $5 billion, due to salaries and benefits rising 7.8% to $2.8 billion, and supply and service costs swelling 8.6%.
After more modest earnings in earlier quarters of 2025, Mayo’s third-quarter output emphasizes its service-line mix and ability to control costs even amid inflationary pressures.
The boost in both operating income and broader income from current activities gives the organization added financial flexibility to invest in technology, research, infrastructure, and other strategic priorities heading into 2026.
Looking ahead, sustaining this level of performance will likely depend on continued strong demand, particularly for complex procedures and specialty care.
Other major nonprofit health systems, like Providence, also enjoyed favorable earnings in the third quarter driven by rising patient volumes. The Renton, Washington-based organization reported operating income of $21 million, compared to a $208 million loss over the same period in 2024, as operating revenue climbed 6% to $8 billion.
Jay Asser is the CEO editor for HealthLeaders.
KEY TAKEAWAYS
Mayo Clinic’s operating income jumped more than 250% year-over-year in the third quarter, driven by rising outpatient, surgical, and hospital volumes.
Revenue climbed to $5.5 billion as patient activity increased across key service lines.
Increased demand seen by Mayo mirrored favorable third quarter trends at other major nonprofit health systems.