health
The state’s largest healthcare system reported a $2.3 billion loss in 2022, including an operating loss of $432 million.
Mass General Brigham, the state’s largest health care system and private employer, reported a loss of $2.3 billion in 2022. This figure includes his operating loss of $432 million for the fiscal year ending September 30.
In a press release on Friday, the healthcare system cited rising costs, capacity constraints, labor shortages and financial market volatility as contributing factors.
“While the effects of inflation and labor shortages are far-reaching, health care providers face unique challenges with little flexibility to respond quickly to rising costs,” said General Brigham. stated in the release.
And it’s not just General Brigham. According to the American Hospital Association, hospitals and health care systems across the country are experiencing the most difficult fiscal year since the start of the pandemic.
In Massachusetts, hospitals and systems large and small have faced millions of dollars in operating losses in recent months. boston globe report.
“Healthcare is facing a relentless economic crisis that is impacting patients’ ability to access care,” MGB President and CEO Dr. Anne Krivanski said in a release, describing the situation as ” I call it ‘unprecedented’.
But Krivanski was optimistic that the health care system would rise to the occasion.
“The stress that has been put on our workforce and systems over the past few years has been tremendous, and Mass General Brigham employees continue to demonstrate strength and resilience,” she said.
How does it compare to 2021?
MGB said it generated $16.7 billion in total operating revenue in 2022.
Meanwhile, operating expenses of $17.1 billion were $1.6 billion higher than last year. According to the release, it was partially due to increases in wages, employee benefits costs, and clinical supplies.
Mass General Brigham’s latest financial report paints a stark contrast to 2021, when the healthcare system reported operating income of $442 million. (More than half of those funds came through the Coronavirus Aid Relief and Economic Security Act and the Affordable Health Care Act, the release said.)
Overall, the system reported an overall profit of $3.2 billion last year.
what are they doing about it?
Looking ahead to 2023, General Brigham is adopting strategies and tactics to address capacity challenges and pressures from inflation in labor and supply costs, said Niyum Gandhi, MGB Chief Financial Officer and Treasurer. said in a release.
“We also prioritized working with General Brigham leadership closest to the programs and services that deliver care across the system to identify the most thoughtful and targeted approaches to reduce costs.” Mr Gandhi said.
So far, plans include expanding home care and telemedicine services, according to the release. A support program to reduce the financial burden of relying on temporary staffing. It also identifies ways to reduce non-labor costs and reduce costs without impacting patient care. For example, eliminate vacant management positions.
“We believe that through thoughtful and strategic decision-making, coupled with efficient resource management, we can continue to invest in communities that provide vital medical research, education and services,” he said.
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