Mass General Brigham’s (MGB) operating income declined to $47 million in the third quarter of its fiscal year, despite a 7% increase in total operating revenue, the nonprofit health system reported its quarterly earnings last week. This marks a significant decrease from the previous year’s $69 million operating income.
While the system experienced revenue growth, rising costs, including wages, benefits, and medical supplies, offset these gains. Despite these challenges, MGB’s leadership remains optimistic about the organization’s financial stability and progress toward its strategic goals.
President and CEO Anne Klibanski emphasized the ongoing efforts to ensure financial stability and access to high-quality affordable care. “Despite pressures that continue to confront Mass General Brigham and other health systems … our ongoing work to ensure financial stability and access to high-quality affordable care will enable our long-term efforts to build a more impactful, patient-focused and equitable health system with the highest quality research-infused care that improves outcomes and experiences for all we serve,” she stated.
Klibanski also highlighted investments in clinical care and the education of the next generation of healthcare professionals.
Niyum Gandhi, MGB’s chief financial officer and treasurer, noted the progress made in reducing expense growth. “We are making progress in our work to reduce our expense growth trend, to ensure our organization is well-positioned to deliver on our mission for years to come,” he said. “Our ongoing work to promote responsible resource stewardship and diversify our revenue sources will enable continued investment in our mission-driven work to improve patient outcomes and support the health of our communities.”
The decline in operating income can be attributed to several factors, including increased expenses and a slight decrease in fully insured membership. However, MGB’s leadership remains committed to its strategic goals and is confident in the organization’s ability to overcome these challenges and continue to provide high-quality care to its patients.
(Hero image credit: Courtesy of Massachusetts General Hospital)
