Mass General Brigham has a loss. David Williams is quoted in the Boston Globe

Mass General Brigham sustained a big loss in the first quarter as the Omicron surge and rising costs made life tougher.

David Williams shared his perspective in the Boston Globe

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David Williams, president of the Boston consulting firm Health Business Group, said that beyond COVID surges and temporary staffing costs, hospitals were being squeezed by inflation and supply chain problems. But unlike retail stores, they cannot just raise prices automatically to compensate, given the timing of insurance contracts.

Although COVID hospitalizations are ticking upward, they are far below those of the January surge and it is unlikely another such surge would come soon, Williams said. The other challenges are manageable.

“They will still have pressure,” Williams said. “But there are things they can do to keep costs under control including on the administrative side. ... But the pressure should be lower in the second half of the year than in the first and second quarter.”