Mass General Brigham says cost cutting is underway – CommonWealth Magazine

MASS GENERAL BRIGHAMthe state’s largest and most expensive health care system, says it is on track to meet the cost savings goal agreed to under a first-of-its-kind agreement with the state’s Health Policy Commission.

The hospital system in September 2022 agreed to reduce its costs by $176.3 million in the 18 months between October 1, 2022 and March 31, 2024, or $127.8 million year over year.

During a meeting of the Health Policy Commission on Wednesday, agency officials said savings in the first six months of the Hospital Systems Performance Improvement Plan were $45.3 million, 25 percent of the total. amount envisaged at one third of the 18-month initiative. Mass General Brigham said he believes he is on track to meet his 18-month goal.

The hospital system is ahead of cost reduction goals in most elements of the performance improvement plan, except in two areas reducing the use of MRI and CT scans and expanding health care delivery in the patients’ homes.

The cost-cutting agreement was the first and only time thus far that the Health Policy Commission has asked a healthcare provider to reduce its costs to help bring the overall healthcare system into line with the cost-growth benchmark largely voluntary yearly.

Mass General Brigham initially insisted he was being unfairly targeted by the commission, claiming he had been asked to develop a so-called performance improvement plan based on outdated financial details that failed to account for the fact that the hospital system treats some of the sickest patient states. Ultimately, however, the hospital system relented and proposed a performance improvement plan with $70 million in annual savings that was later raised to $127.8 million after negotiations with commission officials.

David Seltz, executive director of the Health Policy Commission, said the agency would validate any numbers provided by Mass General Brigham. But he went out of his way to praise Mass General Brigham for his efforts.

The tone and tenor of the conversations with Mass General Brigham were extremely positive, Seltz said.

The performance improvement plan includes the largest savings – $86.4 million – from a reduction in outpatient rates at Mass General Brighams academic medical centers, including Massachusetts General Hospital and Brigham and Women’s Hospital. During the first six months of the performance improvement plan, savings were $16 million, slightly more than the anticipated $15.6 million.