Top 20 hospitals by highest contract labor expenses

U.S. hospitals are increasingly working with contracted labor to keep their facilities staffed and running to provide quality patient care. With provider burnout rising, the healthcare staffing market is also projected to grow over 7% into 2022.

How much do hospitals spend on contract labor each year?

Analyzing financial data from HospitalView reveals average hospital contract labor spend more than doubled between 2011 and 2020, from $2.23 million to $4.59 million. Hospital spend in 2020 ranged from a few thousand dollars a year to over $280 million, with a median value of $1.56 million. The annual average increase in spend was about eight percent. In comparison, total hospital operating expenses increased at about four percent year-over-year.

The following table lists the hospitals with the highest contract labor expenses according to 2020 data from approximately 3,100 U.S. hospitals.

Hospitals with highest total contract labor expenses in 2020

Rank Definitive ID Hospital Name Location Total Contract Labor Expense
1 2191 Mayo Clinic Hospital - Saint Mary's Campus Rochester, MN $286,784,628
2 526 Fontana Medical Center Fontana, CA $200,218,085
3 366 Los Angeles Medical Center Los Angeles, CA $176,274,880
4 535 Kaiser Permanente Zion Medical Center San Diego, CA $156,699,820
5 303 Kaiser Permanente - Oakland Medical Center Oakland, CA $142,249,279
6 553293 Kaiser Permanente - Roseville Medical Center Roseville, CA $126,900,246
7 482 Orange County - Anaheim Medical Center Anaheim, CA $122,956,930
8 593 Kaiser Permanente - Santa Clara Medical Center Santa Clara, CA $118,333,451
9 513 Kaiser Permanente - South Sacramento Medical Center Sacramento, CA $112,520,748
10 367 Downey Medical Center Downey, CA $109,106,926
11 510 Kaiser Permanente - Sacramento Medical Center Sacramento, CA $105,388,874
12 564 Kaiser Permanente - Manteca Medical Center Manteca, CA $85,612,576
13 414 Baldwin Park Medical Center Baldwin Park, CA $74,933,970
14 1914 The Johns Hopkins Hospital Baltimore, MD $74,289,122
15 589 Kaiser Permanente - San Jose Medical Center San Jose, CA $72,088,840
16 555 Kaiser Permanente - San Francisco Medical Center San Francisco, CA $71,839,290
17 835802 Kaiser Permanente - San Leandro Medical Center San Leandro, CA $71,824,240
18 413 West Los Angeles Medical Center Los Angeles, CA $71,265,560
19 404 South Bay Medical Center Harbor City, CA $70,839,852
20 2442 Barnes-Jewish Hospital Saint Louis, MO $69,748,279

Fig. 1 Data is from the Definitive Healthcare HospitalView product. Data is sourced from the Medicare Cost Report. The most recent data is through Q3 2020 and new data is released quarterly. Accessed December 2021.

Which hospitals have the highest contract labor expenses?

The Mayo Clinic Hospital in Rochester, Minnesota spent over $286 million for contracted labor in 2020. Next, Fontana Medical Center in Fontana, California spent about $200 million and Los Angeles Medical Center spent $186 million on contract labor. These two facilities and 15 additional hospitals in the list of hospitals with the highest contract labor expenses are part of Kaiser Permanente and located in California.

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