Hospitals with the highest IT expenses

Software and information technology (IT) in healthcare have proven integral to improving patient care outcomes and reducing costs. The most prolific example of healthcare technology is the electronic health record (EHR), which enables secure patient data collection and sharing between providers. Other popular platforms include computerized physician order entry (CPOE), financial accounting programs, PACS, patient portals and telehealth.

Operating budgets forecast hospital department expenditures and revenues for the coming year, including IT operating expenses. As the year goes on, hospital leaders and supply chain managers may adjust purchasing and other spending to ensure the actual budget aligns with the original projection.

What does a hospital’s IT operating budget cover?

Hospital IT budgets can cover many expenses including but not limited to:

• Software solutions being used by clinical and administrative staff
• Medical devices for patient and vital sign monitoring
• Imaging equipment for diagnosis or surgical preparation
• Hardware and networking components that allow for device connection and communication
• Cybersecurity solutions to protect patient information
• Hospital IT personnel salaries

How much do hospitals spend on information technology?

In the Definitive Healthcare HospitalView product, IT operating budget is a proprietary calculation based on a facility’s size, services, and data from the Medicare Cost Report, such as hospital operating expenses.

The average IT operating expense budget across approximately 4,660 hospitals is $7.8 million. This is about 3% of the average total hospital operating expense of $209 million.

Below is a list of the top 25 hospitals with the highest estimated IT operating budgets. Results in the following analysis are aggregated from the most recent 12-month interval tracked in our database.