Mass General Brigham CEO: Capacity crisis to continue

Ayla Ellison -

Boston-based Mass General Brigham saw its revenue and net income increase in the 12 months ended Sept. 30, despite higher expenses, staffing shortages and capacity challenges. 

The health system reported revenue of nearly $16 billion in fiscal year 2021, up from $14.1 billion a year earlier, according to financial documents released Dec. 10. The growth was attributed to several factors, including increases in patient service, premium and research revenue.

"While we saw growth across care delivery, insurance and research activities over the course of the past year, recent capacity challenges exacerbated by staffing shortages will continue to put pressure on our operating performance in 2022," Niyum Gandhi, treasurer and CFO of Mass General Brigham, said in an earnings release.

To address the challenges presented by the combination of higher patient demand and capacity and staffing constraints, Mass General Brigham established interdisciplinary teams to analyze the issues and identify solutions. 

"During 2021, we moved from the acute phase of the public health crisis into a more complex period where a combination of deferred care and severe staffing challenges created an inpatient bed shortage across our system," Mass General Brigham President and CEO Anne Klibanski, MD, said in an earnings release. "Although this capacity crisis is not likely to end anytime soon, it is not unique to our system or state and will require a coordinated set of solutions to resolve, including providing more care to patients in ambulatory settings, closer to their homes."

The health system said operating expenses totaled $15.6 billion in fiscal year 2021 and remain elevated due to supplies costs and increases in wages and benefits. A year earlier, Mass General Brigham reported operating expenses of $14.4 billion. 

The health system closed out fiscal year 2021 with operating income of $442.5 million, compared to an operating loss of $350.5 million a year earlier. 

Mass General Brigham reported a nonoperating gain of $2.7 billion in fiscal year 2021, which primarily reflects favorable investment performance, and net income of $3.2 billion. A year earlier, the system reported a nonoperating gain of $614 million and net income of $263.5 million. 

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