Mass General Brigham is off the hook with state policymakers after exceeding a $176.7 million cost-cutting target outlined in an 18-month performance improvement plan.
Boston-based Mass General Brigham reported cost savings of more than $197 million, and the Massachusetts Health Policy Commission deemed the plan a success at its Thursday meeting.
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Mass General Brigham implemented 10 strategies to reach the savings target, including price reductions, utilization reductions and shifting care to lower-cost sites. Most of the savings — about $125 million — stemmed from price reductions, according to a news release.
"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," Mass General Brigham said in a statement.
Mass General Brigham began implementing the improvement plan in October 2022, after the Massachusetts Health Policy Commission raised concerns about excessive spending. The health system spent $293 million in excess of Massachusetts' cost growth benchmark from 2014 to 2019, the commission determined earlier that year.
Mass General Brigham initially submitted a $105 million savings proposal in May 2022, but after discussions with the commission, it submitted a revised version several months later.
The improvement plan was the first to be implemented under the state's healthcare cost growth benchmark accountability process. The commission said it will continue to monitor spending at Mass General Brigham and will enforce another improvement plan in the future if needed.
"I want to recognize that MGB conducted this work and implemented this plan ... during a time of significant challenges in our state's healthcare system," David Seltz, executive director at the health policy commission, said at Thursday's meeting.
Earlier this year, Mass General Brigham began merging the clinical departments and academic programs at Massachusetts General Hospital and Brigham and Women’s Hospital to streamline operations.
