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
- Mass General Brigham, Consolidated Financial Statements (With Consolidating Financial Information)September 30, 2022 and 2021.
- 2022 MGH and Affiliates Consolidating Statement of Operations and Balance Sheets September 30, 2022.
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 |
- Mass General Brigham, Consolidated Financial Statements (With Consolidating Financial Information) September 30, 2021 and 2020
- Massachusetts General Hospital, Consolidating Financial Statements September 30, 2021
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 |
- 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.
| 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 |