Mayo Clinic reported “another strong year” in 2025 in its annual financial reports, released last week in Rochester, Minn. Among the highlights: Operating revenues were $21.5 billion. Patient admissions grew by 7%. Outpatient digital visits increased by 17%. And the employee headcount grew by 1 2,400 people. “Guided by our primary value of putting the needs of our patients first, 2025 was another strong year for Mayo Clinic,” said Mayo Clinic CEO and President Dr. Gianrico Farrugia in a press release. “Through our Bold. Forward. strategy, we delivered new capabilities that meaningfully improved patients’ lives and positioned us to accelerate patient-centered transformation in the year ahead.” Mayo Clinic’s audited consolidated financial report for 2025 plus a “Management Discussion and Analysis” document both were posted on the Electronic Municipal Market Access website. Total revenue grew by 8.7% in 2025, up from $19.79 billion in 2024. Net medical service revenue, which accounts for 84% of the total revenue, climbed by 9.5% to $18.13 billion. Total expenses also increased, going from $18.5 billion in 2024 to $20.05 billion in 2025. That’s an 8.4% jump. Accounting for 55.6% of the total, salaries and benefits were the biggest expense at $11.16 billion, up 6.45% from 2024. Mayo Clinic reported it added more than 12,400 new employees in 2025, bringing its worldwide workforce to “nearly 85,000” people. “The work of Mayo Clinic begins and ends with our people,” wrote Mayo Clinic’s Chief Administrative Officer Christina Zorn in a press statement. “Across every role and every campus, our staff bring extraordinary skill, compassion and teamwork to patients each day. Their commitment to one another and to those we serve is what turns our strategy into action and makes our mission possible.” On the patient side of the equation, Mayo Clinic reported traditional outpatient visits increased 4.6% and the number of surgical cases grew by 4.2% to 161,590. “Additionally, Mayo Clinic performed 2,065 solid-organ transplants, the most in the nation. Teams introduced 149 new surgeries and procedures and delivered more than 26 million diagnostic tests, including 100 new tests,’ according to Mayo Clinic’s press statement. Medicare was the top payer of medical revenue, at 49.1% of the total. That is up from 48.4% in 2024 and 48.2% in 2023. The percentage paid by Medicaid, however, is on the decrease, accounting for 8.1% in 2025. That is down from 8.4% in 2024 and 8.8% in 2023. “Contract” or traditional insurance payments covered 35.2% of the total costs, which is unchanged from 2024. Of the total medical revenue, 7.6% came from self pay, a slight drop from 8% in 2024. The press statement also highlighted the work by Mayo Clinic Platform, which develops new digital tools using artificial intelligence and patient records. It often partners with outside companies to create these tools. “In 2025, Mayo Clinic integrated 22 Mayo Clinic Platform-driven solutions into clinical practice, enhancing AI-enabled care and streamlining workflows. For example, the PSA Control Tower supports earlier detection of prostate cancer recurrence. Also, researchers can now analyze data from thousands of glioblastoma patients in minutes rather than years,” according to the press release. Mayo Clinic reported about 300 technologies were licensed in 2025 plus almost 200 new agreements were signed across biopharma, diagnostics and AI markets. Capital expenditures for 2025 totaled $1.38 billion, with $670 million for major projects, $540 million for equipment and $172 million for other projects. Other areas of revenue growth included: Retail pharmacy sales: $819 million in 2025, $660 million in 2024, and $530 million in 2023. Other: $331 million in 2025, $283 million in 2024, and $262 million in 2023. Technology commercialization: $59 million in 2025, $46 million in 2024, and $43 million in 2023. Retail stores: $87 million in 2025, $86 million in 2024, and $80 million in 2023. Other areas of revenue decrease included: Royalties: $140 million in 2025, $191 million in 2024, and $120 million in 2023. Oil and gas producing activities: $75 million in 2025, $83 million in 2024, and $75 million in 2023. Education revenue: $60 million in 2025, $61 million in 2024, and $53 million in 2023. Charity care Meanwhile, Mayo Clinic spent $157 million on its heavily scrutinized charity care in 2025, continuing an upward trend since the onset of the COVID-19 pandemic. The 2025 spending is up from $130 million in 2024 and is triple the amount Mayo Clinic spent on charity care in 2021: $49 million, its lowest figure in recent history. In a statement to the Post Bulletin, Mayo Clinic said “the rise in charity care is in part due to Mayo Clinic’s expansion of our presumptive eligibility policy, which identifies patients who may qualify for charity care and eliminates the need for a formal application. This reflects Mayo Clinic’s unwavering commitment to provide access to care for those who need it.” Federal law requires that nonprofit hospitals provide charity care, or financial assistance, programs to partially or wholly forgive medical debt for low-income patients. Hospitals can set their own thresholds for eligibility based on Federal Poverty Level guidelines, and, at the federal level, there is not a required minimum amount hospitals must spend. Since November 2023, Minnesota law requires nonprofit hospitals to screen patients for their charity care eligibility before taking certain actions to reclaim those patients’ outstanding debt. A recent Post Bulletin analysis found that, after the law took effect, several Minnesota health care systems increased their charity care contributions. Mayo Clinic’s increased spending comes after the Minnesota Attorney General’s Office, from 2022-2025, investigated the health system’s charity care practices, which continues to lag its peer institutions. During 2023 and 2024, Mayo Clinic had written off millions of dollars of medical bills as bad debt, rather than charity care, as it transitioned to the presumptive approach. 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