Mayo Clinic said Monday it has given back to the federal government nearly half of the COVID-19 stimulus grants it received because it recovered faster than expected.
The Rochester, Minn.-based health system said it has returned $156 million of its $338 million worth of Provider Relief Fund grants, effective Dec. 21. The money was part of the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act.
Mayo’s operating margin was almost 8% in the quarter ended Sept. 30, 2020, well ahead of many of its peers. The health system generated $288 million in operating income in the quarter, up 18% over the 2019 period.
Of the $182 million in grants Mayo is keeping, it has already booked $173 million as revenue. The remaining $9 million will be recognized by the year’s end, Mayo spokesperson Jay Furst wrote in an email.
Mayo also had fully repaid all of its $915 million in Medicare advance payments in July, which is well ahead of the government’s repayment timeline. Providers aren’t required to begin repayment until one year after receiving it, with a recoupment rate of 25% for the first 11 months, under relaxed terms approved in September.
Investor-owned HCA Healthcare said in October it planned to return all $1.6 billion in relief grants it received. The Nashville, Tenn.-based hospital chain has boosted its profit so far this year. Net income was up 9% year-over-year in the third quarter, which ended Sept. 30, even without any grant funding.