Massachusetts agencies have approved General Brigham’s plan to cut spending. The agency wants to increase its powers to control healthcare costs.

The Massachusetts Health Policy Board, an agency focused on curbing rising health care costs, voted this week to approve General Brigham’s plan to save $127.8 million a year. .

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

Mass General Brigham aims to generate most of its markdown savings ($90 million). Remaining savings are expected to come from reduced utilization ($32.4 million) and the shift of care to lower-cost facilities ($5.4 million). The proposal also calls for improved accountability through value-based care, the committee said.

The state commission and General Brigham have been arguing over cost-cutting plans for some time. General Brigham originally proposed a plan that would save $70 million a year, but at the request of the Commission he revised his proposal.

General Brigham has embarked on a nearly $2 billion plan to expand the facility, but that plan has changed after state officials voiced their concerns. General Brigham is also expanding its home hospital program.

The Massachusetts Health Care Policy Board, established 10 years ago, is also calling for more authority to control health care costs.

In a statement, the commission said it should have “better oversight tools, including the power to impose graduated financial penalties to deter excessive spending.”

The commission also urges Massachusetts to take further steps to curb rising health care costs. Scrutinizing provider mergers and expansions. Increased monitoring of the pharmaceutical sector, including pricing. (Read the agency’s full report and recommendations.)

According to the commission, Massachusetts has higher hospital utilization than the national average. Massachusetts has 7% higher hospital admissions than the United States as a whole, 11% higher emergency department visits than the national average, and 42% higher outpatient visits. The Commission said the gap had narrowed somewhat in recent years.

“The long-term systemic drivers underlying high spending growth persist, and the continued impact of the COVID-19 pandemic is likely to continue,” Deborah Deboe, chairman of the Health Policy Board, said in a statement. “We have only added new headwinds,” he said. strongly encourages all stakeholders to address these challenges.”

Commissions show that the price increases with the need for more action. From 2018 to 2020, hospital prices for procedures in the inpatient setting rose by 7.9%, and services in hospital outpatient departments rose by 7.1%. Prices for services in clinics increased by 3.2% during that time.

From 2017 to 2020, consumers paid 50% more for 30 days of prescription drugs for chronic conditions, according to the commission.

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

In a statement, he said the committee’s recommendations were “a willingness to change course and provide a new, progressive blueprint for addressing the most important challenges facing our healthcare system today.” said to reflect the

The hospital says it is facing serious financial difficulties.

Hospitals are expected to lose billions of dollars this year, and more than half of all hospitals are expected to exit with negative margins in 2022, according to a recent report from the American Hospital Association. Hospitals report rising labor costs and staffing shortages across the country.