May 5, 2000

In a leadership meeting April 28, MGH department heads, managers and supervisors heard a range of presentations about the hospital's goals and financial performance, current activities of the Massachusetts General Physicians Organization (MGPO) and the status of the ambulatory care building project.

James J. Mongan, MD, MGH president, began the meeting with a report on the hospital's positive financial performance for the first two quarters of fiscal year 2000. Results for the first and second quarters showed a current operating gain of $13.9 million. These favorable results can be attributed to increases in inpatient and outpatient volume for the first six months of the fiscal year, with admissions roughly 1,000 over budget and 1,500 over last year's second quarter.

"We are pleased with the healthier numbers we are showing compared with this same time last year," said Mongan. "Thanks to a great deal of hard work from everyone throughout the hospital, our financial situation is much more positive. To maintain these improved results moving forward, we need to stay focused on managing the budget process while continuing to provide the same high-quality care to our patients."

Sally Mason, vice president for Finance, credited the hospital's strong volume, aggressive expense management initiatives and last year's efforts to reduce length of stay for contributing to the gain. Unexpected developments — such as getting some relief from the Balanced Budget Act and a favorable outcome of negotiations with the National Institutes of Health for an increase in research overhead rate — also contributed to the positive results.

Peter Slavin, MD, chief executive officer for the MGPO, acknowledged the five-year anniversary of the MGPO and gave a brief overview of the physician organization's current activities. Slavin noted that, as the largest physician organization in New England, the MGPO has taken a strong advocacy role in ensuring that physicians receive fair compensation from health insurers. Statistics show that Massachusetts physician fees are among the lowest in the nation, but despite these lower fees, Massachusetts physicians face higher costs associated with running an office and a higher-than-average cost of living. MGPO leadership is negotiating contracts with local insurers, such as Blue Cross and Blue Shield, to bring more equity to the fee schedules.

Michael Jellinek, MD, senior vice president for Administration, gave a progress report about the construction of a new ambulatory care building, an underground parking facility, renovation of the Charles Street T station and the commercial development of the jail site. The first phase of the ambulatory care building project will involve erecting a structure over the Northeast Proton Therapy Center, which will offer approximately 180,000 square feet of additional space. The second phase of the project will include demolishing the VBK and Clinics buildings and constructing a 220,000-square-foot building in their place. The project is expected to cost approximately $180 million and be completed in 2006.

At the meeting, Mongan also told the audience about recent retreats held with his senior management team in which specific goals have been identified to guide hospital activities. Some of the goals include organizing care to be more convenient, accessible and manageable for patients; improving quality and safety programs to ensure patient satisfaction; managing space and facilities effectively to allow for appropriate growth of programs and services; improving information systems to support patient care; and continuing to work with clinicians to reduce length of stay and manage expenses. Mongan emphasized that these goals — although considered a work in progress — should help MGHers set priorities and manage progress as the hospital moves into 2001 and beyond.