Mass General Brigham posts $1.6B loss in Q2

Boston-based Mass General Brigham, formerly Partners HealthCare, recorded a $1.6 billion net loss in the second quarter of fiscal year 2020. 

The net loss in the quarter ended March 31 compares to a net income of $623 million in the same period in 2019. 

Mass General Brigham reported an operating loss of $178 million in the second quarter of fiscal 2020, compared to an operating gain of $107 million in the same quarter one year prior. 

Additionally, Mass General Brigham saw nonoperating losses rise significantly in the second quarter, to $1.4 billion. This compares to an nonoperating gain of $516 million reported in the same period in fiscal 2019. 

The health system said that its operating revenue was negatively affected by the COVID-19 pandemic, as patient volume dropped significantly after suspending nonemergent procedures. 

Mass General Brigham said it expects to lose about $400 million in patient service revenue per month, based on an analysis of March and April data, but the duration of the revenue loss will "depend on many factors."

To help offset the financial hit from the pandemic, Mass General Brigham said it will reduce planned capital expenditures by about 50 percent, implement a hiring freeze and take steps to boost its liquidity. 

"The events of the past few months in healthcare and beyond are unprecedented and will have a significant financial impact on all healthcare providers," said Peter Markell, CFO and treasurer of Mass General Brigham. "Our focus remains on our patients as we now apply our learnings from this crisis to improve care delivery and begin to return to more routine health care operations later this year."

More articles on healthcare finance: 
CMS offers hospitals $1.9B in incentive payments
Democrats unveil $3 trillion COVID-19 relief package
Hospitals blast CMS decision to double down on price transparency

 

© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.