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November 16, 2008 

A Message from James J. Mongan, MD, President and CEO

You may have read a story in The Boston Globe on November 16, 2008, that makes assertions about managed care contracts and healthcare costs at Partners HealthCare and in Massachusetts.

The story is misleading because it fails to put crucial facts in proper context and leaves the public with misconceptions about our high quality and about the major factors driving up healthcare costs.  Consider the following:

1. There is a Healthcare Cost Crisis – But it is Not Unique to Massachusetts

• In September 2007, The Boston Globe reported data from Hewitt Associates showing that premiums in Boston grew 1% LESS than the national trend over the past eight years.  
• Healthcare premiums in Massachusetts are only 8% more expensive than the national average while the overall cost of living in Boston is 35% above the national average.

• Partners cost per case falls in line with median health costs when compared with other peer hospitals recognized on the U.S. News & World Report Honor Roll.  Case mix and wage adjusted Medicare cost per case among Honor Roll hospitals is $8,004.  Brigham and Women’s Hospital and Massachusetts General Hospital compare at $8,130 and $7,793 respectively.
• Partners’ hospitals compete in a national market.  Compared to national competitors, Partners’ operating margin is low at 1.6%.  UPenn’s margin is 9.8%, Northwestern, 6.7%, and Cleveland Clinic, 6.3%.

3. Partners’ Quality Ranks Very Highly When All Factors Are Examined

• Boston is the only city in the country with two hospitals — Massachusetts General Hospital and Brigham and Women’s Hospital —  ranked in the Top 10 on US News & World Report Honor Roll.  In addition to the ‘Honor Roll’ designation, one or both ranked among the top ten in twelve different specialties.  The US News & World Report rankings are based on a comprehensive and detailed methodology that is over 100 pages long.
• The Globe story relies on measures and data for mortality that are not provided by the state and federal government nor are they nationally endorsed.
• A comprehensive overview of quality, based on nationally endorsed CMS data, would show Partners with scores of 96% and 95% at BWH and MGH respectively. 
• MGH & BWH are national leaders in the area of medical research, ranking as the top two recipients of NIH funding among independent hospitals in the region and in the U.S.

We expect that you may see similar stories in The Boston Globe in the coming weeks.  We will continue to set the record straight as these stories appear.

We deeply value the important work that goes on every day in our institutions to provide outstanding and nationally recognized patient care, to teach the next generation of physicians and caregivers, to develop research breakthroughs in the understanding and treatment of disease, and to improve the health of our most vulnerable citizens here and around the world.

Sincerely,

James J. Mongan, MD
President and CEO
Partners HealthCare System, Inc.