Somerville, Mass.-based Mass General Brigham cut $197.1 million in healthcare costs during an 18-month improvement plan set by the Massachusetts Health Policy Commission, exceeding a targeted $176.7 million.
Here are seven things to know:
1. The achievement concludes the state's first Performance Improvement Plan that addressed Mass General Brigham's spending trends that had previously been an issue for the state's healthcare cost growth benchmark, according to a Dec. 12 news release.
2. The health system's spending growth frequently exceeded the state benchmark from 2014 to 2019, which resulted in $293 million in above-benchmark spending for commercially insured primary care patients, higher than any other Massachusetts provider. It was driven mostly by a higher service mix and prices, along with payer mix and patient acuity, according to slides from the Health Policy Commission's Dec. 12 board meeting.
3. Mass General Brigham utilized 10 strategies to achieve the savings. The system focused on price reduction, which accounted for $125 million of its savings, shifting to lower-cost settings care and reducing utilization.
4. Price reduction results came from on-campus outpatient procedures and services and MG West procedures and services rate reductions, along with Mass General Brigham Health Plan Connector Care product price adjustments. Utilization reduction came from effectively managing CT and MRI utilization, expanding the health system's integrated care management program, and new MGB Health Plan interventions. Virtual care visit discounts helped drive savings, while the hospital and home program dealt with staffing challenges but showed "strong momentum."
5. The 18-month plan ran from October 2022 to March 2024. Some of the strategies began immediately or predated the plan but continued throughout the process. Other strategies began on Jan. 1, 2023, to ensure payer contract cycle alignment.
"We appreciate the collaborative approach from the HPC in this endeavor," a spokesperson for Mass General Brigham MGB said in a Dec. 16 statement shared with Becker's. "We are committed to continuing to drive these savings, as well as seeking other areas for affordability, while investing in solutions to address both cost and access in order to build a sustainable future for our patients, providers, and stakeholders across the Commonwealth."
6. HPC board Chair Deborah Devaux said in the release that the commission will continue monitoring if "MGB can sustain and expand these efforts" as the state's healthcare affordability worsens. David Seltz, the commission's executive director, said there remains a need for broader affordability measures to address healthcare cost disparities in the state.
7. The Health Policy Commission might require "subsequent" performance improvement plans for Mass General Brigham should its spending reach concerning in the future.