State approves Mass General Brigham's plan to cut spending by $128M

The Massachusetts Health Policy Commission voted to approve the performance improvement plan submitted by Mass General Brigham, in which the provider plans to cut spending by $127.8 million, according to a Sept. 27 news release from the commission.

In January, the Health Policy Commission required Boston-based Mass General Brigham to develop a performance improvement plan — the first the commission has required of a health plan or provider system in the state and the first ever required in the nation. The requirement was initiated after the commission identified "significant concerns" and noted that the provider's spending growth above the benchmark was greater than any other provider in the state. 

Mass General Brigham submitted an initial plan in May and was encouraged to submit a revised proposal to ensure the criteria for approval were met. As a result, Mass General Brigham increased its targeted annual savings from $70 million to $127.8 million. 

The approved plan includes the following strategies to reduce healthcare spending annually: 

  • Price reductions — $90 million
  • Reducing utilization — $32.4 million
  • Shifting care to lower-cost sites — $5.4 million
  • Enhancing accountability through value-based care

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