Share

PEBT

Financial Overview FY21

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.

FY2021 Financial Report

The Institute’s FY2021 financial performance reflects a combination of strength in the academic programs and initial investments in our future growth – ENRICH programs. 

In FY2021, the Institute invested $2.8 million in the ENRICH programs to optimize enrollment capacity in current programs, identify potential new areas for expansion, enhance continuing and professional development, redesign the clinical experience and support innovation. 

As a result, FY21 actual net income from operations was $2.3 million, which reflects our continuing focus on 1) enhancing academic programs; 2) investing in the Institute’s vision, mission, and strategic priorities; 3) providing increased support for research activities, and 4) sustaining our financial strength.

Revenues and Expenses

Total FY2021 operating revenues were $66.9 million compared to $59.7 million from the prior year.   Tuition and fee revenue increased by $5.3 million due to stronger enrollment. Direct research and direct academic revenue increased by $1.7 million to $5.6 million from $3.9 million in FY2021 due to an increase in research activities and Higher Education Emergency Relief Fund (HEERF) related spending.

Total operating expenses increased by $4.9 million from $59.7 million for FY2020 to $64.6 million for FY2021.  Institutional support and academic support increased by about $3 million in FY2021, which reflected the investment in the ENRICH programs. Instructional costs maintained its level of spending similar to FY2020, approximately 51% of overall expenses. Increase in institutional support included ENRICH expenses of $2.1 million. Increase in academic support included expenditures to recruit principal investigators and IT related hardware and software for academic programs and students.

Assets

Total assets increased by $21.0 million from $170.4 million as of September 2020 to $191.4 million as of September 2021. The increase in assets was primarily due to increase in cash and equivalents and in investments driven by the market performance and donations.  

Liabilities and Net Assets

Total liabilities of $75.6 million as of September 2020 increased by $1.1 million to $76.7 million primarily driven by an increase in year-end accruals for expenses and deferred revenues and student deposits. Total net assets of $94.8 million as of September 2020, increased by $19.9 million to $114.7 million as of September 2021 due to favorable operating results and changes in investment values and fundraising activities.

Balance Sheets:  September 30, 2021 and 2020 (in thousands)

 

2021

2020

Assets

 

 

Current assets:

 

 

Cash and equivalents

$19,019

$10,474

Investments

43,697

36,304

Current portion of investments limited as to use

6,427

4,499

Research grant receivable, net

464

587

Other current assets

2,614

2,485

Total current assets

72,221

54,349

Investments limited as to use, less current portion

6,558

5,898

Long-term investments

6,707

5,977

Interest in the net assets of affiliates

40,232

32,085

Property and equipment, net

27,790

30,882

Right-of-use operating lease assets

37,522

40,980

Other assets

366

224

Total assets

$191,396

$170,395

 

 

 

Liabilities and Net Assets

 

 

Current liabilities:

 

 

Current portion of notes payable to affiliates

$1,016

$1,193

Accounts payable and accrued expenses

19,668

16,822

Accrued employee compensation and benefits

1,951

1,409

Current portion of operating lease obligations

4,775

-

Unexpended funds on research grants

221

187

Due to affiliates

3,395

1,403

Total current liabilities 

31,026

21,014

Other liabilities

 

 

Accrued other

2,650

2,874

Operating lease obligations, less current portion

33,362

41,033

Notes payable to affiliates, less current portion

9,657

10,674

Total liabilities

76,695

75,595

 

 

 

Net assets

 

 

Unrestricted

84,804

70,352

Donor restricted

29,897

24,448

Total net assets

114,701

94,800

 

 

 

Total liabilities and net assets

$191,396

$170,395

 

 

 

 

Statement of Operations:  Years Ended September 30, 2021 and 2020 (in thousands)

 

2021

2020

Operating revenues

 

 

Tuition and fees

$ 65,170

$ 59,691

Less: Financial aid

7,732

7,598

     Tuition and fees, net

57,438

52,093

 

 

 

Direct academic and research revenue

5,657

3,902

Indirect academic and research revenue

1,284

1,045

Other revenue

2,569

2,699

     Total operating revenues

66,948

59,739

 

 

 

Operating expenses

 

 

Instruction

33,221

32,822

Institutional support

12,598

10,722

Research

4,949

3,721

Student services

3,497

3,295

Academic support

10,189

8,963

Facilities

178

175

     Total operating expenses

64,632

59,697

 

 

 

Income from operations

2,315

42

 

 

 

Nonoperating gains (expenses)

 

 

Income from investments

13,227

3,278

Other nonoperating (expenses) income

(1,066)

(1,497)

Academic and research gifts, net of expenses

(52)

1,073

System development funding

(14)

(2)

Total nonoperating gains (expenses), net

12,095

2,852

 

 

 

Excess of revenues over expenses

14,410

2,894

 

 

 

Other changes in net assets:

 

 

Transfers from affiliates

42

186

 

 

 

Increase(decrease) in unrestricted net assets

$   14,452

$   3,080

 

 

 

Statements of Changes in Net Assets: Years Ended September 30, 2021 and 2020 (in thousands)

 

2021

2020

Unrestricted

 

 

Net assets, beginning of year

$70,352

$67,272

 

 

 

Increases (decreases)

 

 

Income (loss) from operations

2,315

42

Income (loss) from investments

13,227

3,278

Other nonoperating (expenses) income

(1,066)

(1,497)

Academic and research gifts, net of expenses

(52)

1,073

System development funding

(14)

(2)

Transfers (to) from affiliates

42

186

Change in unrestricted net assets

14,452

3,080

 

 

 

Net assets, end of year

$84,804

$70,352

 

 

 

Donor Restricted

 

 

Net assets, beginning of year

$24,448

$23,739

 

 

 

Increases (decreases)

 

 

Income (loss) from investments

4,322

518

Other nonoperating income (expenses)

448

144

Other changes in net assets

679

47

Change in donor restricted net assets

5,449

709

 

 

 

Net assets, end of year

$29,897

$24,448