Mass General Brigham recorded nearly $1.5 million in operating losses in the first quarter

Mass General Brigham continues to struggle with rising costs, staffing issues and capacity issues.

On Friday, the system reported $480 million in net income for the first quarter ended Dec. 31, a significant improvement from the $104.96 million reported last year. However, this jump was largely supported by non-operating factors, including investment-related gains of more than $400 million. Revenue increased by 8.4% to $4.46 billion.

Mass General Brigham reported an operating loss of $1.43 million for the quarter, despite $52 million in service provider revenue related to the previous year’s operations, including a $22 million grant under the American Bailout Plan Act. 2021. Spending rose 8.7% to $4.46 billion, including a 6.1% increase in compensation and benefits spending, which increased up to 2.37 billion dollars.

“We continue to staff as many beds as possible to meet the needs of patients, which requires the constant use of contract labor,” Chief Financial Officer Niyum Gandhi said in a press release. “Associated costs may reduce operating margins in the short term, but over time we expect to benefit from clinical integration and resource management initiatives.”

The system said it covered a $574 million gap related to reimbursement from Medicare, Medicaid and the Health Safety Net.

Mass General posted an annual loss of $2.3 billion in 2022, much of it due to poor investment performance. The system said it is looking to cut costs in areas that do not affect patient care, such as eliminating vacant administrative positions. He is also working to reduce non-labor costs and identify other ways to save money.

Mass General said it is creating a new leadership structure for its community hospitals and physicians to streamline operations and deliver more coordinated care.