Somerville, Mass.-based Mass General Brigham recorded an operating loss of $85.6 million (-1.4% operating margin) in the first quarter of fiscal 2026, compared to an operating loss of $53.8 million (-1% margin) during the same period last year, according to its Feb. 13 financial report.
Total operating revenue was $6 billion for the three months ended Dec. 31, up from $5.4 billion during the same period last year. Net patient service revenue was $3.8 billion, up from $3.5 billion. Premium revenue was $697.2 million, up from $543.2 million.
Mass General Brigham said the 7.4% year over year increase in net patient revenue reflected a 3.5% increase in discharges, driven by a 2.2% reduction in the average acute care length of stay, as well as continued growth in outpatient activity.
“The shorter length of stay reflects the system’s continued focus on the efficient use of resources while continuing to operate under stressed capacity levels, particularly at its academic medical centers,” the system said in the report.
Total operating expenses were $6.1 billion in the first quarter, up from $5.5 billion during the same period last year. Employee compensation and benefit expenses were $2.9 billion, up from $2.8 billion. Supplies and other expenses were $1.7 billion, up from $1.5 billion. Medical claims and related expenses were $600.5 million, up from $377.2 million.
The 59% year over year growth in medical claims expenses reflected health plan membership growth, higher care acuity and increased pharmaceutical costs, according to the report. The medical loss ratio increased to 95.8% from 93.8%. The administrative expense ratio decreased to 6.5% from 7.8%.
The health system reported a net income of $378.2 million in the first quarter of 2026, up from a net income of $281.7 million during the same quarter last year.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
