PEBT
Financial Overview FY20
Mass General Brigham Incorporated (formerly known as 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 Mass General Brigham Incorporated financial statement and in the Mass General Hospital and Affiliates financial statement.
- Mass General Brigham, Consolidated Financial Statements (With Consolidating Financial Information) September 30, 2020 and 2019
- Massachusetts General Hospital, Consolidating Financial Statements September 30, 2020 and 2019
FY2020 Financial Report
In FY2020, the Institute addressed several significant and unprecedented challenges. Enrollment declined in the School of Nursing programs, and prerequisite and non-degree courses. In March the COVID-19 pandemic required the Physician Assistant program to defer the program start date for its new students to the fall term of FY21 and to adjust its summer term curriculum. The Institute also incurred nearly $700K of unbudgeted COVID-19 related expenses to address the social distancing and safety of the students, faculty and staff. Several interventions were taken to offset the impact of these events including new marketing strategies to increase enrollment and tuition and fee revenues, optimize staffing levels, and to reduce other expenses.
FY20 actual net income from operations was $42K, slightly above breakeven. This performance continued the Institute’s trend of positive results and improvements in its financial strength. The positive results reflect the success of the Institute’s strategies to manage its resources and to advance its mission in a manner that supports students, enhanced its academic programs, and provide increased support for research activities
Revenues and Expenses
Total FY2020 operating revenues were $59.7 million compared to $60.6 million for the prior year. Revenue from all income categories declined slightly due to changes in academic programs and COVID related restrictions.
Total operating expenses increased by $2.4 million from $57.3 million for FY2019 to $59.7 million for FY2020. Instruction costs of $32.8 million grew by $1.4 million and comprised 55% of FY2020 expenses. Institutional support grew by $756K to $10.7 million providing increased levels of support to academic programs and students.
Assets
Total assets increased by $44.8 million to $170.4 million as of September 2020. The change was primarily accounting changes that required operating leases to be recognized as assets. Increases in investments driven by changes in market value, and purchases of property and equipment for campus expansion also contributed to asset growth.
Liabilities and Net Assets
Total liabilities increased by $41.0 M to $75.6 million as of September 2020. The change was primarily accounting changes that required operating obligations to be recognized as liabilities. Total net assets grew by $3.8 million to $94.8 million as of September 2020 due to results from operating activities and non-operating investment and fundraising activities.
Balance Sheets: September 30, 2020 and 2019 (in thousands)
2020
2019
Assets
Current assets:
Cash and equivalents
$10,474
$15,837
Investments
36,304
27,805
Current portion of investments limited as to use
4,499
11,109
Research grant receivable, net
587
412
Other current assets
2,485
2,305
Total current assets
54,349
57,468
Investments limited as to use, less current portion
5,898
4,735
Long-term investments
5,977
5,906
Interest in the net assets of affiliates
32,085
30,869
Property and equipment, net
30,882
26,471
Right-of-use operating lease assets
40,980
-
Other assets
224
144
Total assets
$170,395
$125,593
Liabilities and Net Assets
Current liabilities:
Current portion of notes payable to affiliates
$1,193
$1,143
Accounts payable and accrued expenses
16,822
15,450
Accrued employee compensation and benefits
1,409
1,659
Unexpended funds on research grants
187
129
Due to affiliates
1,403
1,856
Total current liabilities
21,014
20,237
Other liabilities
Accrued other
2,874
2,478
Operating lease obligations, less current portion
41,033
-
Notes payable to affiliates, less current portion
10,674
11,867
Total liabilities
75,595
34,582
Net assets
Unrestricted
70,352
67,272
Donor restricted
24,448
23,739
Total net assets
94,800
91,011
Total liabilities and net assets
$170,395
$125,593
Statement of Operations: Years Ended September 30, 2020 and 2019 (in thousands)
2020
2019
Operating revenues
Tuition and fees
$ 59,691
$ 60,104
Less: Financial aid
7,598
7,438
Tuition and fees, net
52,093
52,666
Direct academic and research revenue
3,902
3,666
Indirect academic and research revenue
1,045
1,093
Other revenue
2,699
3,218
Total operating revenues
59,739
60,643
Operating expenses
Instruction
32,822
31,411
Institutional support
10,722
9,966
Research
3,721
3,705
Student services
3,295
3,248
Academic support
8,963
8,745
Facilities
175
186
Total operating expenses
59,697
57,261
Income from operations
42
3,382
Nonoperating gains (expenses)
Income from investments
3,278
1,887
Other nonoperating (expenses) income
(1,497)
62
Academic and research gifts, net of expenses
1,073
(238)
System development funding
(2)
(4)
Total nonoperating gains (expenses), net
2,852
1,707
Excess of revenues over expenses
2,894
5,089
Other changes in net assets:
Transfers from affiliates
186
116
Increase(decrease) in unrestricted net assets
$ 3,080
$ 5,205
Statements of Changes in Net Assets: Years Ended September 30, 2020 and 2019 (in thousands)
2020
2019
Unrestricted
Net assets, beginning of year
$67,272
$62,067
Increases (decreases)
Income (loss) from operations
42
3,382
Income (loss) from investments
3,278
1,887
Other nonoperating (expenses) income
(1,497)
62
Academic and research gifts, net of expenses
1,073
(238)
System development funding
(2)
(4)
Transfers (to) from affiliates
186
116
Change in unrestricted net assets
3,080
5,205
Net assets, end of year
$70,352
$67,272
Donor Restricted
Net assets, beginning of year
$23,739
$23,525
Increases (decreases)
Income (loss) from investments
518
(103)
Other nonoperating income (expenses)
144
329
Other changes in net assets
47
(12)
Change in donor restricted net assets
709
214
Net assets, end of year
$24,448
$23,739