A Massachusetts agency is seeking more power after a major health system push to cut costs

A Massachusetts state agency has signed on to Massey General Brigham’s plan to cut costs, and the agency wants more power to control health care costs.

The Massachusetts Health Policy Commission, an agency focused on reducing health care cost growth, voted this week to approve the Mass General Brigham plan, which is designed to produce $127.8 million in annual savings.

The Massachusetts commission hailed the plan as the first of its kind required by the agency and the first of its kind in the nation. The commission ordered the health system to develop a performance improvement plan in January, citing concerns over General Brigham’s spending.

Mass General Brigham aims to generate most of the savings ($90 million) through cost reductions. The remaining savings are expected to come from reducing utilization ($32.4 million) and shifting care to lower costs ($5.4 million). The commission also noted that the proposal should improve accountability for value-based care.

The State Commission and General Brigham argued for some time over the cost-saving plan. Mass. General Brigham originally proposed a plan that would have resulted in $70 million in annual savings, but revised the proposal at the commission’s behest.

Mass. General Brigham is planning a nearly $2 billion expansion of its facilities, a plan that has changed after state officials expressed concerns. Mass. General Brigham is also expanding its home hospital program..

It was founded 10 years ago by the Massachusetts Health Policy Commission. Pushing for more power to control health care prices.

The Commission said in a statement that it should have greater monitoring tools, including the power to impose heavy fines, to prevent excessive spending.

In addition, the commission calls for Massachusetts to take additional measures to reduce the growth in health care costs, including hospital price increases; further explore supplier integration and expansion; More regulation of the pharmaceutical sector, including prices. (Read the agency Full report and recommendations.)

Massachusetts has higher hospital utilization than the national average, the commission said. Massachusetts’ inpatient length of stay is 7% higher than the U.S. average, emergency room visits are 11% higher, and outpatient visits are 42% higher than the national average. The gap has closed somewhat in recent years, the commission said.

“The long-term systemic factors behind high spending growth continue, and the ongoing impact of the COVID-19 pandemic has only reared its head,” Health Policy Commission Chairwoman Deborah Devaux said in a statement. “We must continue to address these challenges, otherwise the Commonwealth will not be able to meet its expenditure containment targets. Today’s report makes strong recommendations for all stakeholders to address these challenges.”

When the commission wants more measures, it suggests a price increase. In the year Between 2018 and 2020, hospital rates for inpatient procedures increased by 7.9%, and hospital outpatient services increased by 7.1%. The cost of services at doctor’s offices increased 3.2 percent during that period.

In the year From 2017 to 2020, consumers paid 50% more for a 30-day supply of prescription drugs for serious illnesses, the commission announced.

David Seltz, executive director of the Health Policy Commission, said the agency is looking for new ways to limit rising health care costs.

In a statement, the commission’s recommendations “reflect a desire to change course and develop a new, progressive design to address the major challenges facing our health care system today.”

Hospitals said. They are facing serious financial problems..

Hospitals are projected to lose billions of dollars this year, and More than half of all hospitals are expected to end 2022 with a negative margin.According to a recent report by the American Hospital Association. Hospitals are reporting high labor costs and staff shortages.