Mass General Brigham Reports Operating Loss For Fiscal 2022

The organization attributed its lackluster earnings results to continued pressures from rising expenses, labor shortages, and capacity constraints.

Mass General Brigham, a not-for-profit, integrated healthcare system based in Boston—has ended fiscal 2022 with an operating loss of $432 million (-2.6% operating margin) and a net loss of $2.3 billion.

The organization attributed its lackluster earnings results to continued pressures from rising expenses, labor shortages, and capacity constraints. Mass General Brigham also cited "heightened unfavorable volatility in the financial markets" as another contributing factor to its fiscal year operating loss. The system also reported total revenue of $16.7 billion for fiscal 2022.

"Healthcare is facing an unrelenting economic crisis that is impacting patients’ ability to access care. It is our responsibility at Mass General Brigham to continue to provide high-quality care while being good fiscal stewards on behalf of the 1.7 million patients whom we care for," Anne Klibanski, MD, President, and CEO of Mass General Brigham, said in the earnings release. "While what we are experiencing today is unprecedented, it’s important to remember that we have overcome challenges before during our long history. The stress placed on our workforce and our system over the past several years has been enormous, and the employees at Mass General Brigham continue to show strength and resiliency. We are confident that thoughtful and strategic decision-making coupled with efficient resource management will enable us to continue investing in critical medical research, education, and the communities we serve, while ensuring that we can care for every patient who needs us."

For the 2021 full year, Mass General Brigham reported an operating income of $442 million. This includes $232 million of permanent grants from the CARES Act, which were used to prevent, prepare for, and respond to cases of COVID-19, and $30 million in Affordable Care Act risk corridor program subsidies for insurance coverage provided from 2014 to 2016. Excluding these funds, operating income was $180 million (1.1% operating margin), including income from provider activity of $203 million (1.4% operating margin) and a loss from insurance activity of $23 million (-2.5% operating margin). The system reported an overall gain of $3.2 billion in 2021.

"Heading into 2023, we are employing strategies and tactics to address capacity challenges and ongoing inflationary pressures on labor and supplies costs, including a heightened focus on clinical integration to enhance patient care efficiencies and resource stewardship. We have also prioritized engaging with Mass General Brigham’s leaders who are closest to the programs and services delivering care across the system to identify the most thoughtful and targeted approach to reducing costs," Niyum Gandhi, Chief Financial Officer, and Treasurer at Mass General Brigham said in the release. "Simultaneously, we are taking the next steps in transitioning our care model to one based on value rather than volume, facilitated by the launch of a zero premium Medicare Advantage plan, moving approximately 140,000 Medicaid members into a full-risk program and demonstrating our commitment to improving the affordability of patient care."