Mass General Brigham margins rebound amid $361M net gain in Q2

Boston-based Mass General Brigham reported an $6 million operating loss in the second quarter of fiscal year 2023, which ended on March 31. The loss is a significant improvement on the $193 million operating loss recorded in the same period last year. 

The health system's operating margin increased to -0.1 percent in the second quarter of this year compared to -4.8 percent for the same period last year. 

Patient volumes are rebounding but labor and supply pressures — including cost inflation and workforce vacancies that contributed to capacity challenges — continue to affect operating performance, according to Mass General Brigham. 

"We are strategically investing in the system's future, including advancing integration initiatives, growing research and breakthrough innovations, supporting and retaining our workforce, adopting new technology to reduce burnout and lowering costs without impact to patient care," President and CEO Anne Klibanski, MD, said. "While we are making progress on our transformation as a system, we will continue to face these external pressures which will limit our ability to drive advancements in health for our patients, communities and the world."

Total operating revenue grew to $4.5 billion in the second quarter of fiscal year, with patient care revenue increasing 11 percent  year over year to $3.2 billion. The system also generated $244 million in premium revenue (+5 percent), $669 million in research revenue (+9 percent) and $427 million in other revenue (+25 percent).

Operating expenses totaled $4.5 billion in the second quarter, a 7 percent year-over-year increase. Expenses remain elevated to increases in wages (6 percent), and costs and use of clinical (19 percent) and pharmaceutical (21 percent) supplies, according to the system. 

After including the performance of its investment portfolio and other nonoperating items, Mass General Brigham reported an overall gain of $361 million in the second quarter, up from an $867 million loss in the prior year period. 

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