Hospitals with the highest IT operating budgets

Software and information technology (IT) in healthcare have proven integral to improving patient care outcomes and reducing costs. The most prolific example of healthcare IT 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), 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 is the average hospital IT budget?

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 $7.7 million. This is about 3% of the average total operating expense of $238.2 million for these hospitals.

Below is a list of the top 25 hospitals with the highest estimated IT operating budgets. The figure used for calculations is a hospital’s most recent Medicare Cost Report, which can include both 2020 and 2021 data.

Top 25 hospitals by IT operating budget

Rank Definitive ID Hospital name Location Total operating expenses Est. IT operating expense budget
1 541974 NewYork-Presbyterian/Weill Cornell Medical Center New York, NY $7,240,896,211 $253,431,367
2 2843 Tisch Hospital New York, NY $6,444,113,234 $225,543,963
3 3120 Cleveland Clinic Main Campus Cleveland, OH $6,240,384,003 $218,413,440
4 3742 Vanderbilt University Medical Center Nashville, TN $5,356,674,083 $187,483,593
5 2846 Memorial Sloan Kettering Cancer Center New York, NY $4,851,823,428 $169,813,820
6 588 Stanford Hospital Stanford, CA $4,734,759,011 $165,716,565
7 273024 Montefiore Hospital - Moses Campus Bronx, NY $4,346,224,000 $152,117,840
8 1973 Massachusetts General Hospital Boston, MA $4,282,515,271 $149,888,034
9 560 UCSF Helen Diller Medical Center at Parnassus Heights San Francisco, CA $4,575,166,953 $141,830,176
10 2096 University Hospital Ann Arbor, MI $3,988,374,149 $139,593,095
11 4017 University of Texas MD Anderson Cancer Center Houston, TX $3,916,508,130 $137,077,785
12 1365 IU Health Methodist Hospital Indianapolis, IN $3,879,662,196 $135,788,177
13 873 AdventHealth Orlando Orlando, FL $3,960,690,702 $122,781,412
14 731 Yale New Haven Hospital New Haven, CT $3,384,585,957 $118,460,508
15 430 Cedars-Sinai Medical Center Los Angeles, CA $3,609,143,674 $111,883,454
16 2828 Long Island Jewish Medical Center New Hyde Park, NY $3,160,716,052 $110,625,062
17 1969 Brigham and Women's Hospital Boston, MA $3,141,310,329 $109,945,862
18 2824 North Shore University Hospital Manhasset, NY $2,897,840,845 $101,424,430
19 2837 Mount Sinai Medical Center New York, NY $3,240,804,472 $100,464,939
20 1631 The University of Kansas Hospital Kansas City, KS $2,866,771,912 $100,337,017
21 1914 The Johns Hopkins Hospital Baltimore, MD $2,748,969,000 $96,213,915
22 3571 Hospital of the University of Pennsylvania Philadelphia, PA $2,696,028,871 $94,361,010
23 2973 Duke University Hospital Durham, NC $2,672,551,167 $93,539,291
24 550 UC San Diego Medical Center - Hillcrest San Diego, CA $2,554,689,987 $89,414,150
25 6386 Texas Children's Hospital Houston, TX $2,522,019,907 $88,270,697

Fig. 1 Data is from the Definitive Healthcare HospitalView product. Hospital financial data is sourced from the Medicare Cost Report with estimated IT expenditures based on proprietary calculations. Data accurate as of May 2022.

The average estimated IT operating budget for these 25 hospitals is $136.6 million. Seven of the hospitals are in New York and four are in California. Their average total operating expense is nearly $4 trillion.

Estimated IT operating expenses for New York-Presbyterian Weill Cornell Medical Center total over $253 million. Another New York City hospital, Tisch Hospital, has an estimated IT budget of $225 million, while Cleveland Clinic reports IT expenses of $218 million.

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