Financial Overview FY19
Partners HealthCare System, Inc. (PHS) is the sole governing member of The Massachusetts General Hospital (MGH). MGH is the sole governing member of the Institute. The Institute's activity is included in both the Partners HealthCare System, Inc. financial statement and in the Mass General Hospital and Affiliates financial statement.
- View the Partners HealthCare System, Inc. and Affiliates, Consolidated Financial Statements (With Consolidating Financial Information) September 30, 2019 and 2018.
- View the 2019 MGH and Affiliates Consolidating Statement of Operations and Balance Sheets with the Institute’s activity.
FY2019 Financial Report
The Institute achieved positive financial results for the fiscal year ended September 30, 2019 providing important fiscal resources to support its mission, vision, and strategic plans. The Institute used these resources to provide $7.4 million of financial aid to students, enhance its academic programs, and provide increased support for research activities.
Revenues and Expenses
Total operating revenues grew by $1.5 million from $59.2 million for FY2018 to $60.6 million for FY2019. Enrollment growth in the Institute’s academic programs increased net tuition and fees by nearly $ 2.0 million. Research revenues grew by $1.5 million due to new federal grant awards received during FY2019.
Total operating expenses increased by $4.5 million from $52.7million for FY2018 to $57.2 million for FY2019. Instruction costs comprised 55% of FY2019 expenses and grew by $1.8 million to $31.4 million to support new academic programs and higher student enrollment levels. Other expenses were incurred for research grants, to strengthen organizational structures, to increase institutional and academic support, and to advance the Institute’s mission and strategic plans.
Total assets increased by $3.7 million to $125.6 million as of September 2019. The change was primarily due to increases in investments driven by changes in market value, and purchases of property and equipment for campus expansion.
Liabilities and Net Assets
Total liabilities declined by $1.8 million to $34.6 million as of September 2019. The change was mainly a result of decreases in notes payable and other amounts due to affiliates and Total net assets grew by $5.4 million to $91.0 million as of September 2019 due to results from operating activities and non-operating investment and fundraising activities.
Statements of Financial Position: September 30, 2019 and 2018 (in thousands)
Cash and equivalents
Current portion of investments limited as to use
Research grant receivable
Other current assets
Total current assets
Investments limited as to use, less current portion
Net pledges and contributions receivable, less current portion
Interest in the net assets of affiliates
Property and equipment, net
Liabilities and Net Assets
Current portion of notes payable to affiliates
Accounts payable and accrued expenses
Accrued employee compensation and benefits
Unexpended funds on research grants
Due to affiliates
Total current liabilities
Notes payable to affiliates, less current portion
Total net assets
Total liabilities and net assets
Statements of Activities And Changes in Net Assets: Years Ended September 30, 2019 and 2018 (in thousands of dollars)
Tuition and fees
Less: Financial aid
Tuition and fees, net
Direct academic and research revenue
Indirect academic and research revenue
Total operating revenues
Total operating expenses
Increase in net assets from operating activities
Income from investments
Gifts and other, net of fundraising and other expenses
Academic and research gifts, net of expenses
System development funding
Increase in net assets from nonoperating activities
Excess of revenues over expenses
Other changes in net assets:
Transfers from affiliates
Beginning of year
End of year