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