April 9, 1999

As a part of the hospitalwide budget management plan, the MGH has enacted a spending freeze on all capital projects and purchases that can be delayed. This recent cost reduction is a result of the losses experienced during the first three months of fiscal year 1999, which put the hospital $15 million behind budget.

"Although we remain hopeful that our revenue enhancement and cost reduction efforts will yield improvements, we have concluded that we must take all necessary measures to preserve our financial position while it is still healthy," said James J. Mongan, MD, president of the MGH, in a memo to senior management. "Given the recent budget management efforts, we are optimistic that our financial results will improve in the second half of the fiscal year and that we will be able to resume spending on previously approved capital projects."

Projects or purchases that need to move forward should be brought to the attention of vice presidents or department heads. Priority capital issues will be reviewed by senior management. For more information, call Katie Hope, MGH budget director, at 6-2221.