Mass General Brigham posts $32M quarterly loss; CFO strategy having 'positive impact'

Boston-based Mass General Brigham saw a $32 million operating loss of (-0.6% margin) for the first quarter of the fiscal year 2024, which ended Dec. 31, 2023, improving on an operating loss of $53 million (-1.2% operating margin) over the same period last year.

Total operating revenue was $5 billion in the first quarter of the fiscal year. Excluding $114 million from governmental sources related to 340B and the pandemic, operating revenue increased by $503 million, or 11% compared to the first quarter of 2023.

Including $114 million in one-time revenue, the system reported an operating income of $82 million, compared to a loss of $1 million in the same period the previous year. 

"Despite ongoing capacity challenges, Mass General Brigham continues to invest in our four-part mission of delivering the best patient care, driving world-changing research, educating the next generation of health care professionals, and investing in the health of our communities," Anne Klibanski, MD, president and CEO of Mass General Brigham, said in the health system's first quarter fiscal year 2024 report.

Patient care revenue increased $155 million, or 5%, to $3.3 billion. The nonprofit health system also generated $481 million in premium revenue (109% increase) due to the addition of around 150,000 MassHealth members under a new Accountable Care Organization, $703 million in research and academic revenue (10% increase), along with $441 in additional revenue (7% increase).

Operating expenses increased $481 million, or 11%, to $4.9 billion compared to the first quarter of 2023. The rise in costs stemmed from an increase in medical claims (89%, related to an increase in health plan membership), wages (7%), clinical costs and use (12%), pharmaceutical supplies (23%), and depreciation and interest (2%).

"Our financial results for the first quarter of fiscal year 2024 demonstrate that the steps we are taking are having a positive impact," Niyum Gandhi, CFO and treasurer of Mass General Brigham, said in the report. "These results also reflect elevated labor and supplies costs, highlighting the importance of our efforts to reduce our long-term expense growth trend while generating sustainable revenue sources through initiatives like the growth of Mass General Brigham Health Plan and developing new collaborations to fuel AI development at MGB and beyond that will help position us for long term financial sustainability."

The system reported an overall gain of $579 million in the first quarter of 2024,up from an overall gain of $480 million in the 2023 first quarter. 

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars