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.

Fiscal Year Reports

 

FY2022 Financial Report

The Institute’s FY2022 financial statements reflect its continuation of investment in the growth of academic programs and research activities. However, the delayed approval from the Department of Higher Education for the new master's programs had a negative impact on the Institute’s ability to market and recruit students in FY2022. In addition, $1.4 million in accelerated depreciation expense from one building also contributed to a negative operating loss of $0.4 million as of September 30, 2022.

Statement of Financial Position

The Institute’s balance sheet reflects higher liquidity and a strong balance among asset classes: total assets were $167.7 million as of September 30, 2022, with $17.2 million in cash and short-term investments, $48.0 million in the institution’s endowment, and $25.2 million in property and equipment.

Total assets decreased by $23.7 million from $191.4 million as of September 2021 to $167.7 million as of September 2022, which is primarily due to the decrease in investments driven by the current market performance. The institute strives to maintain high cash and cash equivalent balances.

Total liabilities of $76.7 million as of September 2021 decreased by $6.9 million to $69.8 million as of September 2022, primarily driven by a decrease in operating lease obligations and year-end accruals for expenses.

Total net assets of $97.9 million as of September 30, 2022 showed a decrease of $16.8 million from FY2021 year end, primarily due to unfavorable changes in investment values.

Operating Results

Total FY2022 operating revenues grew by $2.7 million to $69.7 million from $66.9 million in the prior fiscal year. Net tuition and fee revenue increased by $1.6 million due to an increase in tuition revenue offset by higher financial aid. Direct research and direct academic revenue increased by $0.2 million to $5.9 million in FY2022 from $5.7 million in FY2021 due to increase in research activities and Higher Education Emergency Relief Fund (HEERF) related spending.

Total operating expenses increased by $5.4 million from $64.6 million for FY2021 to $70.0 million for FY2022. Instruction increased by $5.6 million in FY2022, which reflected the continued investment in the academic programs. Instructional support decreased its level of spending by $0.7 million compared to FY2021, as the initial investment in the academic programs’ growth were recorded under Institutional Support in FY2021 where the majority of such investments were recorded under Instructions starting in FY2022. Research expenses increased by $0.5 million which were offset by their related increase in revenue, while other areas remained consistent with the prior year.

Non-Operating Results in Without Donor Restrictions Net Assets

Total FY2022 non-operating loss was heavily impacted by the current market performance. Compared to an income from investment of $13.2 million FY2021, investments were at a loss of $11.4 million in FY2022. Increase in the Academic and research gifts was primarily due to meeting the time restrictions of a donor restricted gift at the year end.

Looking Forward

In FY2023, the Institute continues its effort on improving operating efficiencies, aligning resources with the Institute’s strategic plan to guarantee its superior service to students and outstanding academic deliveries.

 

2022

2021
Assets    
Cash and equivalents 17,247 19,019
Investments 29,620 43,697
Current portion of investments limited as to use 9,931 6,427
Research grant receivable, net 331 464
Other current assets 2,848 2,614
Total current assets 59,977 72,221
     
Investments limited as to use, less current portion 9,067 6,558
Long-term investments 5,889 6,707
Interest in the net assets of affiliates 33,184 40,232
Property and equipment, net 25,212 27,790
Right-of-use operating lease assets 33,889 37,522
Other assets 481 366
Total assets $167,699 $191,396

 

Liabilities and Net Assets 2022 2021
Current liabilities:    
Current portion of notes payable to affiliates 921 1,016
Accounts payable and accrued expenses 17,885 19,668
Accrued employee compensation and benefits 1,640 1,951
Current portion of operating lease obligations 4,640 4,775
Unexpended funds on research grants 265 221
Due to affiliates 3,842 3,395
Total current liabilities  29,193 31,026
     
Other liabilities    
Accrued other 1,600 2,650
Operating lease obligations, less current portion 30,261 33,362
Notes payable to affiliates, less current portion 8,736 9,657
Total liabilities 69,790 76,695
     
Net assets    
Unrestricted 74,491 84,804
Donor restricted 23,418 29,897
Total net assets 97,909 114,701
     
Total liabilities and net assets $167,699 $191,396
Operating revenues 2022 2021
Tuition and fees 67,862 65,170
Less: Financial aid 8,857 7,732
Tuition and fees, net 59,005 57,438
Direct academic and research revenue 6,283 5,657
Indirect academic and research revenue 1,286 1,284
Other revenue 3,095 2,569
Total operating revenues 69,669 66,948

 

Operating expenses 2022 2021
Instruction 38,855 33,221
Institutional support 11,858 12,598
Research 5,456 4,949
Student services 3,623 3,497
Academic support 10,046 10,189
Facilities 208 178
Total operating expenses 70,046 64,632
     
Income from operations (377) 2,316

 

Without donor restriction Nonoperating gains (expenses) 2022 2021
Income from investments (11,351) 13,227
Other nonoperating (expenses) income (1,902) (1,066)
Academic and research gifts, net of expenses 3,337 (52)
System development funding (12) (14)
Total nonoperating gains (expenses), net (9,928) 12,095
     
Excess of revenues over expenses (10,305) 14,410
     
Other changes in net assets:    
Transfers from affiliates (8) 42
Increase(decrease) in unrestricted net assets (10,313) 14,453
Without donor restrictions  2022 2021
Net assets, beginning of year 84,804 70,352
     
Increases (decreases)    
Income (loss) from operations (377) 2,315
Income (loss) from investments (11,351) 13,227
Other nonoperating (expenses) income (1,902) (1,066)
Academic and research gifts, net of expenses 3,337 (52)
System development funding (12) (14)
Transfers (to) from affiliates (8) 42
Change in unrestricted net assets (10,313) 14,452
     
Net assets, end of year 74,491 84,804

 

With Donor Restrictions 2022   2021  
Net assets, beginning of year 29,897 24,448
     
Increases (decreases)    
Income (loss) from investments (4,339) 4,322
Other nonoperating income (expenses) (1,316) 448
Other changes in net assets (824) 679
Change in donor restricted net assets (6,479) 5,449
     
Net assets, end of year 23,418 29,897

 

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.

Assets

2021

2020
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 2614 2485
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 2021 2020
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

 

Operating revenues 2021 2020
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 2021 2020
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) 2021 2020
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

 

Unrestricted 2021 2020
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 2021   2020  
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

 

 

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.

Assets

2020

2019
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 2485 2305
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 2020 2019
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

 

Operating revenues 2020 2019
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 2020 2019
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) 2020 2019
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

 

Unrestricted 2020 2019
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 2020   2019
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