Mass General Brigham is cutting costs and trying to operate more efficiently as part of its plan to bounce back from last year’s more than $2 billion in losses.
The Boston-based nonprofit system said Friday it is working to improve efficiency with resources such as inpatient beds and CT scanners, reduce administrative burdens on clinicians and build a more integrated operation between service lines.
It is also trying to reduce long stays in emergency departments for behavioral health patients and if needed, direct them to more appropriate inpatient care, it said Friday.
Mass General Brigham Health Plan, formerly AllWays Health Partners, manages the system’s 140,000-member accountable care organization, which helps to better coordinate care for underserved populations, Chief Financial Officer Niyum Gandhi said in a news release reporting the system’s fiscal second quarter. The health plan began offering new Medicare Advantage plans this year.
Neither Gandhi nor CEO Dr. Anne Klibanski was made available for interviews.
The efforts seem to be paying off.
Mass General Brigham reported net income of $361.39 million in its second quarter that ended March 31. That compared with a net loss of $866.59 million in last year’s second quarter. Revenue increased 11.7% to $4.51 billion, including a $318 million increase in patient care revenue. Results were also boosted by $379 million in investment gains.
The system reported a quarterly operating loss of $6.09 million, an improvement from the $193.18 million loss a year ago.
Quarterly expenses rose 6.7% year-over-year to $4.52 billion, including a 6% increase for salaries and wages, a 19% jump for clinical supplies and a 21% increase for pharmaceuticals.