Boston’s healthcare sector fueled by greater investment, expanded services
Writer: Andrea Teran
June 2024 — Boston and the New England region have continued to bolster its status for healthcare research and innovation as public and private investment open doors for an expanding workforce.
Earlier this month, the UMass Chan Medical School in Worcester opened a 350,000-square-foot research and education facility that will house over 70 principal investigators and several key medical research departments.
“Our campus community is very excited about getting to work in the new research facility. I am prioritizing faculty recruitment and making sure they have adequate funding and the tools to change the course of the history of the disease,” Michael Collins, chancellor of UMass Chan Medical School told Invest:. “We will increase class sizes and educate learners because we know we need more nurses, physicians, and scientists in the workforce.” The building also features a geothermal system aimed at achieving LEED Gold certification for energy efficiency.
Industry leaders have highlighted the need for continued investment in healthcare education and workforce development as more than 100,000 nurses left the profession from 2019 to 2022, and health systems could face a shortage of 200,000 to 450,000 nurses by 2025, according to a McKinsey & Company report.
In a significant educational initiative, Boston high schools will now prepare students for immediate healthcare jobs upon graduation, thanks to a $38 million investment by Bloomberg Philanthropies. This initiative, part of a $250 million nationwide effort, will see Mass General Brigham help develop curricula for careers in nursing, emergency medicine, and more. “For our community members to be able to step into well-paying jobs where they’re desperately needed builds on-ramps to higher-paying careers,” said Boston Mayor Michelle Wu, as cited by the New York Times.
Furthermore, Mass General Brigham has expanded its mobile health services with new Community Care Vans. Initially launched to provide COVID-19 vaccines, these vans now offer a broader range of services, including screenings for diabetes, hypertension, and cancer, as well as substance use disorder treatments. “We are committed to caring not only for those patients who come through our doors every day, but also for the broader community,” Dr. Priya Sarin Gupta, medical director for community-based clinical programs at Mass General Brigham, told GBH News.
The Boston Globe recently hosted a webinar on sustainability in healthcare, highlighting the integration of environmental goals within the healthcare system. Key figures, including Robert Metzke of Philips, emphasized the necessity of embedding sustainability into healthcare practices. Boston Medical Center’s Bob Biggio noted, “By improving the bottom line, we’re creating new resources that the organization can then reinvest into improving access to care”. Partnerships across sectors were underscored as vital for tackling climate change and promoting resilient healthcare systems.
On the technology front, Boston Children’s Hospital hired a “prompt engineer” last fall to enhance its use of AI in clinical settings. This move is part of a broader trend where hospitals are increasingly integrating AI to improve workflows and patient care. John Brownstein, Chief Innovation Officer at Boston Children’s Hospital, noted the importance of having a clinical background in such roles to understand and optimize AI applications in healthcare. Adopting currently available technology, including automation, AI, and generative AI, could allow payers to reduce administrative costs by 13-25%, reduce medical costs by 5-11%, and increase revenue by 3-12%, according to McKinsey & Company. These technologies have the potential to significantly improve efficiency and outcomes in the sector.
In contrast, a cyberattack on Change Healthcare in February cost Massachusetts hospitals an estimated $24 million each day, highlighting the vulnerabilities in the healthcare system’s digital infrastructure. Health and Human Services Secretary Kate Walsh emphasized to NBC Boston the need for strengthened cybersecurity measures, noting, “Healthcare breaches are growing in popularity and severity.”
Moreover, Steward Health Care, the largest physician-led hospital operator in the U.S., filed for bankruptcy, citing financial mismanagement and a challenging healthcare environment. Governor Healey criticized the former management and stated to NBC Boston, “Ultimately, this is a step toward our goal to getting Steward out of Massachusetts, and it allows us to do that to protect access to care, preserve jobs, and stabilize our health care system.” The state has activated an “emergency operations plan” to monitor Steward’s locations and ensure continued patient care and job preservation. However, Steward has recently secured commitments for a $225 million loan to fund its operations through an upcoming auction of its hospitals and doctors group and into the fall. Steward received approval of the financial infusion from Judge Christopher Lopez in the U.S. Bankruptcy Court in Houston.
Massachusetts was also selected to host the Investor Catalyst Hub for the Advanced Research Projects Agency for Health (ARPA-H). Announced by Governor Maura Healey and ARPA-H Director Dr. Renee Wegrzyn, this hub aims to foster collaboration among researchers, entrepreneurs, and investors to accelerate health care innovations. The hub, managed by VentureWell, will support ARPA-H’s mission to navigate complex business and regulatory landscapes and bring groundbreaking ideas to market, maintaining its prominence in the industry.
“This is a huge win for Massachusetts and an opportunity to bring economic development while strengthening our role as a nationwide leader in life sciences,” said Governor Healey in a press release.
For more information, please visit:
https://www.umassmed.edu/
https://www.massgeneralbrigham.org/
https://www.childrenshospital.org/
