Mass Normal Brigham says value slicing on observe
MASS GENERAL BRIGHAMthe state’s largest and costliest well being care system, says it’s on observe to fulfill the associated fee financial savings goal it agreed to as a part of a first-of-its-kind settlement with the state’s Well being Coverage Fee.
The hospital system in September 2022 agreed to pare again its prices by $176.3 million over the 18 months between October 1, 2022 and March 31, 2024, or $127.8 million on an annualized foundation.
At a gathering of the Well being Coverage Fee on Wednesday, company officers mentioned financial savings via the primary six months of the hospital system’s efficiency enchancment plan totaled $45.3 million – 25 p.c of the focused quantity a 3rd of the way in which via the 18-month initiative. Mass Normal Brigham mentioned it believes it is on track to fulfill its 18-month purpose.
The hospital system is forward of the cost-cutting targets in most components of the efficiency enchancment plan besides in two areas – lowering the usage of magnetic resonance imaging and CT scans and increasing well being care supply in affected person houses.
The fee-cutting settlement was the primary and solely time thus far that the Well being Coverage Fee has required a well being care supplier to pare again its prices to assist carry the general well being care system into alignment with the largely voluntary annual value development benchmark.
Mass Normal Brigham originally insisted it was being unfairly focused by the fee, claiming it was being requested to develop a so-called efficiency enchancment plan “primarily based on outdated monetary particulars” that additionally did not account for the truth that the hospital system treats a number of the state’s sickest sufferers. Ultimately, nonetheless, the hospital system relented and proposed a efficiency enchancment plan with $70 million in annualized financial savings that was later raised to $127.8 million after negotiations with fee officers.
David Seltz, the manager director of the Well being Coverage Fee, mentioned the company will validate all of the numbers provided by Mass Normal Brigham. However he went out of his approach to reward Mass Normal Brigham for its efforts.
“The tone and tenor of the conversations with Mass Normal Brigham have been extraordinarily optimistic,” Seltz mentioned.
The efficiency enchancment plan envisions the most important financial savings — $86.4 million — coming from a reducing of outpatient charges at Mass Normal Brigham’s tutorial medical facilities, together with Massachusetts Normal Hospital and Brigham and Girls’s Hospital. By way of the primary six months of the efficiency enchancment plan, financial savings had been $16 million, barely increased than the forecasted $15.6 million.
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