The Massachusetts Board of Health Policy gave Brigham the Massachusetts General an extension to its performance improvement plan.

The HPC ordered the state’s largest health system to develop a cost-reduction plan that exceeded the commission’s spending growth benchmark of $293 million from 2014 to 2019. Originally scheduled for mid-March.

Health systems now have until May 16 to develop plans, including savings goals and approaches, suggested interventions and timelines. HPC will review the plan at its June 8 board meeting.

Commissioners told Wednesday’s board meeting that Mass General Brigham took the issue very seriously and the HPC expects the health system to submit a constructive set of recommendations.

“We want to avoid an infinite loop of going around things without a deal. It’s not like that,” Commissioner David Cutler said. “It’s not a situation where they come to us and say ‘no, no, no’, it loops indefinitely and we haven’t reached an agreement. Rather, it’s a situation where we’re really discussing and trying to help make something in the best interest of the Commonwealth .”

This is the first one performance improvement plan Issued by the committee, although the program has limited executive authority. The maximum penalty for the performance improvement process is $500,000.

Meanwhile, Mass General Brigham has proposed expanding the number of inpatients, which is expected to increase health care costs.

The health system plans to spend more than $2 billion to expand Mass General Hospital and Brigham and Women’s Faulkner Hospital. The projects are expected to increase healthcare costs in Massachusetts by $36.7 million to $62.3 million annually, according to HPC.

Based on the identification of the needs request, MGH will add a 482-bed tower, oncology infusion rooms, operating rooms and imaging equipment. The commission estimated that the $1.9 billion expansion would increase annual costs by as much as $54.4 million.

The five floors of Brigham and Women’s Faulkner Hospital will add 78 inpatient beds, an 8-bed observation unit, imaging equipment and enclosure space for future expansion. HPC’s analysis shows that the $150 million project will add up to $7.9 million in annual costs.

MGH Brigham recently scrapped plans to add three new suburban outpatient locations after the state health department did not approve the project. The $223.7 million project will add up to $27.9 million in annual healthcare costs, HPC said.

Both hospitalized patient expansions were approved by the state health department. The Massachusetts Board of Public Health is expected to review applications for expansion at Massachusetts General Hospital and Brigham and Women’s Faulkner Hospital early next month.

According to HPC, the Massachusetts health system raised prices as market share increased. As for General Brigham, Price increased The committee found that its primarily commercially insured patient population has been the main driver of spending growth on the system, not utilization.

Patients tend to use the state’s relatively expensive academic health system, bypassing community hospitals for low-acuity care.This trend, coupled with rising hospital prices, is responsible for rising healthcare costs Exceeds the state’s benchmark of 3.1% in 2018 and 2019.

Formal price caps, penalties for adjusting performance improvement plans, and other regulatory tools require approval from state legislatures.

“The hospital business model is really broken,” Commissioner Chris Clyde said. “We deal with it every day – the cost is too high, the patient satisfaction is too low, the quality is not good enough. We’re talking about a high-quality place (General Brigham), but I believe it’s a contracting issue and we should Engage with MGB on how they can deliver care differently in the future.”