How Mass General Brigham will cut costs by $176M over 18 months

Mass General Brigham in Somerville, Mass., is on track to meet cost savings goals under its agreement with the state's Health Policy Commission, Commonwealth Magazine reported July 12.

In September 2022, the health system agreed to cut its costs $176.3 million over 18 months. So far, the health system has saved $45.3 million, officials with the Health Policy Commission said July 12, according to the report. The health system, which is ahead of most of its targets, says it believes it will meet its 18-month goal.

Mass General Brigham has tracked ahead of its goals in all areas except in MRI imaging and CT scan use and expanding healthcare delivery in patient homes. The system's plans expect to see the biggest savings — $86.4 million — from lowering outpatient rates at its hospitals. 

In the first six months of the performance improvement plan, savings from lowering outpatient rates have been slightly ahead of pace at $16 million.

The hospital's agreement to pull back costs was the first of its kind with the Health Policy Commission.

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