
Mass General Brigham posts 1.3% margin in Q3
Somerville, Mass.-based Mass General Brigham recorded an operating income of $74.4 million (1.3% operating margin) in the third quarter of 2025, up from $47.2 million (0.9% margin) during the same period last year, according to its Aug. 15 financial report.
The system reported total operating revenue of $5.8 billion for the three months ended June 30, a 12% increase year over year. Patient care revenue totaled $3.7 billion, an 8% increase year over year. The system said this reflected a 3% increase in acute care discharges. Premium revenue increased 19% year over year to $671 million.
Operating expenses totaled $5.8 billion in the quarter, a 12% increase year over year. Wages and benefits increased 8% year over year to $2.8 billion, reflecting patient utilization trends and inflationary pressure on wages. Supplies and other expenses increased 21% year over year, reflecting increased costs and use of pharmaceutical and other clinical supplies. Health Plan medical claims increased 19% year over year to $464 million.
Mass General Brigham reported a net income of $1 billion in the quarter, up from $277 million during the same period last year.
In February, Mass General Brigham announced it was eliminating and rescoping a number of management and administrative roles “to better align the rates of expected revenue and expense growth.” The reorganization is expected to save the system $240 million annually.
“Management continues to focus on initiatives that can drive sustained performance improvement, including patient care throughput and labor management efficiencies, and monitoring emerging federal actions and developing action plans to mitigate potential financial impacts,” the system said in the report.
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