Mass General Brigham continues to struggle with rising costs, staffing and capacity issues.
The system on Friday reported net income of $480 million for the first quarter ended December 31, a significant improvement from the $104.96 million reported in the same period last year. . That jump, however, was largely supported by inactive factors, including more than $400 million in investment-related gains. Revenue rose 8.4% to $4.46 billion.
Mass General Brigham posted an operating loss of $1.43 million for the quarter, despite supplier revenue of $52 million related to the previous year’s operations, including $22 million in funding. from the U.S. Rescue Plan Act of 2021. Expenses rose 8.7% to $4.46 billion, including compensation and benefit costs up 6.1%, up to $2.37 billion.
Chief financial officer Niyum Gandhi said: “We are continuing to put in as many beds as possible to help meet the needs of our patients, which require the constant use of contract workers. “The costs involved may reduce operating profit in the short term, but over time we anticipate benefiting from clinical integration and resource management initiatives. “
The system said it absorbed a $574 million shortfall related to Medicare, Medicaid and Health Safety Net reimbursements.
In 2022, Mass General suffered an annual loss of $2.3 billion, largely due to underperforming investment performance. The system says it is looking to cut costs in areas that don’t affect patient care, such as eliminating administrative vacancies. It is also working to reduce non-labor costs and identify other cost savings.
Mass General said it is creating a new leadership structure for its hospitals and community doctors to streamline operations and provide more coordinated care.
