Although Boston-based Mass General Brigham reported higher revenue in the first quarter of fiscal year 2022, its operating income fell, according to recently released financial documents.
The health system recorded revenue of $4.1 billion in the quarter ending Dec. 31, 2021, up 7.3 percent from the $3.8 billion recorded in the same period one year before. Net patient service revenue grew 8 percent to $3 billion in the quarter, which Mass General Brigham attributed to an increase in systemwide inpatient discharges, higher inpatient acuity and increased utilization of outpatient services.
After factoring in expenses, which rose 10.9 percent year over year to $4.1 billion, Mass General Brigham recorded an operating income of $10.1 million in the first quarter of fiscal 2022. This represents a 0.2 percent operating margin. In the same quarter one year before, Mass General Brigham recorded an operating income of $129.6 million, including about $30 million from COVID-19 subsidies. Without the subsidies the health system's operating margin in the first quarter of fiscal 2021 was 2.6 percent.
The health system also recorded nonoperating gains of $94.9 million in the first quarter of fiscal 2022, compared to $940.7 million in the first quarter of fiscal 2021.
Mass General Brigham ended the first quarter of fiscal 2022 with a net income of $105 million. In the same quarter one year before, the health system recorded a net income of $1.1 billion.
Mass General Brigham said that in the three months ending Dec. 31, 2021, it absorbed about $495 million in Medicare, Medicaid and health safety net reimbursement shortfalls, which is up 18 percent compared to the shortfall absorbed in the same quarter one year before.
"We are continuing to address longstanding capacity challenges for our patients, severely exacerbated by deferred care and a staffing crisis during the latest COVID-19 surge," Mass General said. "The hard work and commitment of our dedicated staff never wavered — they continued to provide the very best patient care we are known for despite these immense challenges."