Mass General Brigham reports operating loss of $432M in FY2022

Massachusetts’ largest health care system lost a colossal amount of money during its last fiscal year, according to a financial report published Friday. Mass General Brigham reported an overall 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 that hospital officials said is widespread. The story was starkly different during the 2021 fiscal year when the nonprofit health care system reported an operating income of $180 million and $262 million in additional money from federal sources. MGB’s overall gain in 2021 was $3.2 billion. “Many health care systems and hospitals nationwide are experiencing the worst year financially since the start of the COVID-19 pandemic,” MGB officials wrote in their financial statement. “While the impacts of inflation and labor shortages are widespread, health care providers face unique challenges with little flexibility to quickly adjust to rising costs.” Over the fiscal year, all hospitals in the system averaged operational capacity at or above 100% and the report indicates that facilities saw a decline in discharges while the length of hospital stays increased. Clinical labor staffing vacancies suppressed bed capacity across the health care continuum, making it significantly more difficult to find post-acute places. This contributed to an average acute care length of stay in excess of 6 days in 2022, approximately 15% longer than the average length of stay before the COVID-19 pandemic and resulted in increased overall resource use per patient,” the report states. Revenue from premiums and research increased, but operating expenses were up largely due to increases in wages, employee benefits and clinical supply costs. The report states the system also absorbed $2.3 billion in shortfalls due to government reimbursements that do not cover the full cost of care, an increase of 15% over 2021’s shortfall. 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, supporting training programs for staff, identifying vacant administrative positions to eliminate and reevaluating budgets for the new fiscal year. BOSTON — Massachusetts’ largest health care system lost a colossal amount of money during its last fiscal year, according to a financial report published Friday. Mass General Brigham reported an overall 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 that hospital officials said is widespread. The story was starkly different during the 2021 fiscal year when the nonprofit health care system reported an operating income of $180 million and $262 million in additional money from federal sources. MGB’s overall gain in 2021 was $3.2 billion. “Many health care systems and hospitals nationwide are experiencing the worst year financially since the start of the COVID-19 pandemic,” MGB officials wrote in their financial statement. “While the impacts of inflation and labor shortages are widespread, health care providers face unique challenges with little flexibility to quickly adjust to rising costs.” Over the fiscal year, all hospitals in the system averaged operational capacity at or above 100% and the report indicates that facilities saw a decline in discharges while the length of hospital stays increased. Clinical labor staffing vacancies suppressed bed capacity across the health care continuum, making it significantly more difficult to find post-acute places. This contributed to an average acute care length of stay in excess of 6 days in 2022, approximately 15% longer than the average length of stay before the COVID-19 pandemic and resulted in increased overall resource use per patient,” the report states. Revenue from premiums and research increased, but operating expenses were up largely due to increases in wages, employee benefits and clinical supply costs. The report states the system also absorbed $2.3 billion in shortfalls due to government reimbursements that do not cover the full cost of care, an increase of 15% over 2021’s shortfall. 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, supporting training programs for staff, identifying vacant administrative positions to eliminate and reevaluating budgets for the new fiscal year.

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