Somerville, Mass.-based Mass General Brigham posted an operating income of $29.7 million (0.6% operating margin) in the second quarter of fiscal year 2024, up from a $6 million loss (-0.1% operating margin) posted during the same period last year, according to the health system's May 9 financial report.
The system posted operating revenues of $5.1 billion in the quarter ended March 31, up 12.7% over the same period last year, according to the report. Patient care revenue increased 5% to $3.3 billion. The system said, "ongoing efforts to coordinate systemwide capacity management facilitated a 2% reduction in the average acute care length of stay to 6.1 days and 7% growth in discharges."
The system said premium revenue increased 134% to $570 million, reflecting a 44% health plan membership growth to 382,378. On April 1, 2023, Mass General Brigham Health Plan began managing the system's ACO through the state's MassHealth program. "This enhanced provider-payer collaboration provides an opportunity to develop integrated models of care that improve health outcomes, expand access, and deliver exceptional experiences for the approximately 150,000 members of the ACO," the system said in the report.
Operating expenses totaled $5.1 billion, an 11.9% increase over the same period last year. The system said expenses remain elevated due to increases in wages (up 7%) and costs and use of clinical and pharmaceutical supplies (up 10% and 25%, respectively).
Mass General Brigham said the increase of MassHealth ACO members to the health plan drove a $198 million (111%) increase in claims expense to $377 million and an increase in the medical loss ratio to 93.7% from 90.5% in the same period last year.
The system had a nonoperating income of $777.6 million in the quarter, up from $361.9 million over the same period last year. It posted a net income of $807.3 in the quarter, up from a $361.4 million net income in the same quarter last year.