Share

PEBT

Financial Overview

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.

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.

Assets

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)

 

2019

2018

Assets

 

 

Current assets:

 

 

Cash and equivalents

$15,837

$16,012

Investments

27,805

32,911

Current portion of investments limited as to use

11,109

3,828

Research grant receivable

412

365

Other current assets

2,305

2,217

Total current assets

57,468

55,333

Investments limited as to use, less current portion

4,735

4,980

Long-term investments

5,906

5,931

Net pledges and contributions receivable, less current portion

3

38

Interest in the net assets of affiliates

30,869

30,182

Property and equipment, net

26,471

25,278

Other assets

141

207

Total assets

$125,593

$121,931

 

 

 

Liabilities and Net Assets

 

 

Current liabilities:

 

 

Current portion of notes payable to affiliates

$1,143

$1,094

Accounts payable and accrued expenses

15,450

15,479

Accrued employee compensation and benefits

1,659

1,465

Unexpended funds on research grants

129

112

Due to affiliates

1,856

2,936

Total current liabilities 

20,237

21,356

Other liabilities

 

 

Accrued other

2,478

1,973

Notes payable to affiliates, less current portion

11,867

13,010

Total liabilities

34,582

36,339

 

 

 

Net assets

 

 

Unrestricted

67,272

62,067

Donor restricted

23,739

23,525

Total net assets

91,011

85,592

 

 

 

Total liabilities and net assets

$125,593

$121,931

 

 

 

 

Statements of Activities And Changes in Net Assets:  Years Ended September 30, 2019 and 2018 (in thousands of dollars)

 

2019

2018

Operating revenues

 

 

Tuition and fees

$ 60,104

$ 57,373

Less: Financial aid

7,438

6,657

     Tuition and fees, net

52,666

50,716

 

 

 

Direct academic and research revenue

3,666

1,970

Indirect academic and research revenue

1,093

510

Other revenue

3,218

5,979

     Total operating revenues

60,643

59,175

 

 

 

Operating expenses

 

 

Instruction

31,411

29,541

Institutional support

9,966

8,941

Research

3,705

2,560

Student services

3,248

3,993

Academic support

8,745

7,489

Facilities

186

192

     Total operating expenses

57,261

52,716

 

 

 

     Increase in net assets from operating activities

3,382

6,459

 

 

 

Nonoperating activities

 

 

Income from investments

1,784

2,918

Gifts and other, net of fundraising and other expenses

392

622

Academic and research gifts, net of expenses

(238)

144

System development funding

(4)

(23)

Other

(12)

96

Increase in net assets from nonoperating activities

1,922

3,757

 

 

 

Excess of revenues over expenses

5,304

10,216

 

 

 

Other changes in net assets:

 

 

Transfers from affiliates

116

125

 

 

 

Net assets

 

 

Beginning of year

85,592

75,251

End of year

$   91,011

$   85,592