Mass General Brigham has said it will reduce its total medical spending by $127.8 million annually, nearly doubling its commitment to reduce its spending after months of discussions with a state watchdog agency.
The filing is part of the hospital’s “performance improvement plan,” which was required by the state’s Health Policy Commission after what it said were years of spending above acceptable levels. MGB is the first health system to be required to file such a plan, which will still need to be approved by commissioners, likely at a meeting on Sept. 27. Approval will put to the test the state’s main mechanism to hold providers accountable for ever-increasing health care costs.
“Despite unprecedented financial challenges facing Mass General Brigham and health systems everywhere, we are resolute in doing our part to lower the cost of health care in Massachusetts, without impacting our ability to provide patient care or our responsibilities to medical research, education, and the communities we serve,” Dr. Gregg S. Meyer, executive vice president of value-based care at Mass General Brigham. “We appreciate working with the Health Policy Commission to develop a plan that relies on our proposed solutions and strategies to reduce health care spending growth.”