The report shows that General Brigham’s Mass lost a fortune over the past year
Massachusetts’ largest health care system lost a massive amount of money over the last fiscal year, according to a financial report released Friday. Mass General Brigham reported a total loss of $2.3 billion in 2022, including a loss of $432 million from operations, for the fiscal year ending Sept. 30. It’s a problem hospital officials said is widespread. It was a very different story during fiscal 2021 when the nonprofit health care system reported $180 million in operating income and $262 million in additional money from federal sources. MGB’s total earnings in 2021 were $3.2 billion. “Many healthcare systems and hospitals across the country are experiencing their worst fiscal year since the start of the COVID-19 pandemic,” MGB officials wrote in their financial statement. “As the effects of inflation and labor shortages spread, healthcare providers face unique challenges with little flexibility to adapt quickly as costs rise.” Over the course of the fiscal year, operating capacity of all hospitals in the system averaged at or above 100% and the report indicates that facilities experienced a decrease in discharges while hospital length of stay increased. “Clinical vacancies have limited bed capacity across the healthcare continuum, making it more difficult to find post-acute placements. This has contributed to an average acute care length of stay of more than 6 days in 2022, i.e. approximately 15% longer than the Medicare average length of stay prior to the COVID-19 pandemic and has resulted in greater overall resource use per patient,” the report states. Revenue from premiums and research increased, but operating expenses rose largely due to increases in wages, employee benefits, and clinical supply costs. The report notes that the system also absorbed $2.3 billion in shortfalls due to government reimbursement that does not cover the full cost of care, an increase of 15% from the shortfall in 2021. The financial report says the health care system is implementing an action plan to mitigate future losses. Steps include ongoing integration efforts across the system, support for employee training programs, and identification of administrative vacancies for elimination and reassessment of budgets for the new fiscal year.
Massachusetts’ largest health care system lost a massive amount of money over the last fiscal year, according to a financial report released Friday.
Mass General Brigham reported a total loss of $2.3 billion in 2022, including a loss of $432 million from operations, for the fiscal year ending Sept. 30. It’s a problem hospital officials said is widespread.
It was a very different story during fiscal 2021 when the nonprofit health care system reported $180 million in operating income and $262 million in additional money from federal sources. MGB’s total earnings in 2021 were $3.2 billion.
“Many healthcare systems and hospitals across the country are experiencing their worst fiscal year since the start of the COVID-19 pandemic,” MGB officials wrote in their financial statement. “As the effects of inflation and labor shortages spread, healthcare providers face unique challenges with little flexibility to adapt quickly as costs rise.”
Over the course of the fiscal year, operating capacity of all hospitals in the system averaged 100% or more and the report notes that facilities experienced a decrease in discharges while hospital length of stay increased.
“Clinical vacancies have limited bed capacity across the healthcare continuum, making it more difficult to find post-acute placements. This has contributed to an average acute care length of stay of more than 6 days in 2022, i.e. approximately 15% longer than the Medicare average length of stay prior to the COVID-19 pandemic and has resulted in greater overall resource use per patient,” the report states.
Revenue from premiums and research increased, but operating expenses rose largely due to increases in wages, employee benefits and clinical supply costs. The report notes that the system also absorbed $2.3 billion in shortfalls due to government payments that do not cover the full cost of care, an increase of 15% from the shortfall in 2021.
The financial report says the healthcare system is implementing an action plan to mitigate future losses. Steps include ongoing integration efforts across the system, support for staff training programs, and identification of administrative vacancies for elimination and reassessment of budgets for the new fiscal year.
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