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Healthcare Insights

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 programsPACS, 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:

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.

Hospitals with the highest IT expenses

RankDefinitive IDHospital nameLocationEstimated IT operating expenseExplore dataset
1541974NewYork-Presbyterian Weill Cornell Medical CenterNew York, NY$246,286,796 Explore
23120Cleveland Clinic Main CampusCleveland, OH$236,322,277 Explore
32843Tisch HospitalNew York, NY$230,617,581 Explore
43742Vanderbilt University Medical CenterNashville, TN$202,895,476 Explore
5588Stanford Hospital - 300 Pasteur DrStanford, CA$184,025,134 Explore
62846Memorial Sloan Kettering Cancer CenterNew York, NY$180,043,656 Explore
71973Massachusetts General HospitalBoston, MA$177,721,524 Explore
8273024Montefiore Hospital - Moses CampusBronx, NY$158,311,335 Explore
9560UCSF Helen Diller Medical Center at Parnassus HeightsSan Francisco, CA$157,893,191 Explore
102096University HospitalAnn Arbor, MI$148,471,918 Explore
114017University of Texas MD Anderson Cancer CenterHouston, TX$142,223,581 Explore
12731Yale New Haven HospitalNew Haven, CT$139,516,957 Explore
131365IU Health Methodist HospitalIndianapolis, IN$135,788,177 Explore
141969Brigham and Womens HospitalBoston, MA$129,841,670 Explore
15873AdventHealth Orlando (FKA Florida Hospital Orlando)Orlando, FL$122,781,412 Explore
16430Cedars-Sinai Medical CenterLos Angeles, CA$122,238,479 Explore
173571Hospital of the University of PennsylvaniaPhiladelphia, PA$121,468,237 Explore
182828Long Island Jewish Medical CenterNew Hyde Park, NY$120,477,640 Explore
192824North Shore University HospitalManhasset, NY$112,852,847 Explore
201631The University of Kansas HospitalKansas City, KS$112,007,139 Explore
212837The Mount Sinai Hospital (AKA Mount Sinai Medical Center)New York, NY$103,860,100 Explore
223567Childrens Hospital of Philadelphia (AKA CHOP)Philadelphia, PA$103,657,382 Explore
23550UC San Diego Medical CenterSan Diego, CA$103,218,141 Explore
243003Atrium Health Carolinas Medical CenterCharlotte, NC$102,125,184 Explore
251914The Johns Hopkins HospitalBaltimore, MD$100,798,180 Explore

Fig. 1 Data is from the Definitive Healthcare HospitalView product and sourced from the Medicare Cost Report. Accessed July 2023.

Which hospitals have the highest IT operating budget?

NewYork-Presbyterian Weill Cornell Medical Center has the highest estimated hospital IT expenses at more than $246 million. The facility is a top academic medical center and has the largest operating expenses for U.S. hospitals.

Cleveland Clinic has the second highest IT expenses of $236 million. Cleveland Clinic also comes in third for hospitals with the largest operating expenses and hospitals with the highest net patient revenue.

Rounding out the top three is Tisch Hospital with nearly $231 million in estimated IT expenses. Tisch Hospital comes in second place on the list of hospitals with the largest operating expenses and hospitals with the highest net patient revenue.

The average estimated IT operating budget for the 25 hospitals on the list is $147.8 million. Seven of the hospitals are in New York and four are in California.

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Healthcare Insights are developed with healthcare commercial intelligence from the Definitive Healthcare platform. Want even more insights? Start a free trial now and get access to the latest healthcare commercial intelligence on hospitals, physicians, and other healthcare providers.