Healthcare Insights
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. While provider burnout rises, the healthcare staffing market is also projected to grow 5.6% from 2022 to 2030.
The following table lists the hospitals with the highest contract labor expenses according to data from approximately 8,300 U.S. hospitals.
Hospitals with highest total contract labor expenses
| Rank | Hospital name | City | State | IDN | Total contract labor | Explore dataset |
|---|---|---|---|---|---|---|
| 1 | Fontana Medical Center | Fontana | CA | Kaiser Permanente Southern California | $213,615,634 | Explore |
| 2 | Oakland Medical Center | Oakland | CA | Kaiser Permanente Northern California | $177,783,841 | Explore |
| 3 | Los Angeles Medical Center | Los Angeles | CA | Kaiser Permanente Southern California | $176,467,843 | Explore |
| 4 | Kaiser Permanente Zion Medical Center | San Diego | CA | Kaiser Permanente Southern California | $174,459,283 | Explore |
| 5 | Roseville Medical Center | Roseville | CA | Kaiser Permanente Northern California | $172,668,359 | Explore |
| 6 | Santa Clara Medical Center | Santa Clara | CA | Kaiser Permanente Northern California | $153,430,493 | Explore |
| 7 | AdventHealth Orlando | Orlando | FL | AdventHealth | $146,057,508 | Explore |
| 8 | South Sacramento Medical Center | Sacramento | CA | Kaiser Permanente Northern California | $143,775,838 | Explore |
| 9 | Sacramento Medical Center | Sacramento | CA | Kaiser Permanente Northern California | $134,590,229 | Explore |
| 10 | Barnes-Jewish Hospital | Saint Louis | MO | BJC HealthCare | $132,804,022 | Explore |
| 11 | Orange County - Anaheim Medical Center | Anaheim | CA | Kaiser Permanente Southern California | $131,985,955 | Explore |
| 12 | Saint Vincent Hospital | Worcester | MA | Tenet Healthcare | $129,965,182 | Explore |
| 13 | University of New Mexico Hospital | Albuquerque | NM | University of New Mexico Hospitals | $127,971,134 | Explore |
| 14 | Banner - University Medical Center Phoenix | Phoenix | AZ | Banner Health | $125,510,049 | Explore |
| 15 | Banner - University Medical Center Tucson | Tucson | AZ | Banner Health | $123,746,900 | Explore |
| 16 | Downey Medical Center | Downey | CA | Kaiser Permanente Southern California | $119,560,649 | Explore |
| 17 | The Johns Hopkins Hospital | Baltimore | MD | Johns Hopkins Health System | $111,415,768 | Explore |
| 18 | NYC Health and Hospitals - Bellevue | New York | NY | NYC Health and Hospitals | $109,790,176 | Explore |
| 19 | Manteca Medical Center | Manteca | CA | Kaiser Permanente Northern California | $107,784,575 | Explore |
| 20 | OU Health - University of Oklahoma Medical Center | Oklahoma City | OK | OU Health | $106,705,908 | Explore |
Fig. 1 Data is from the Definitive Healthcare HospitalView product. Data accessed November 2022.
Which hospitals have the highest contract labor expenses?
In first, Fontana Medical Center in Fontana, California spent more than $200 million. Next, Oakland Medical Center in Oakland, CA spent $177 million on contract labor, and Los Angeles Medical Center in Los Angeles, CA spent $176 million.
Beyond the top three facilities, eight additional hospitals on our list are part of the IDN, Kaiser Permanente, and are located in California. Kaiser Permanente is one of the largest IDNs in the U.S.
How much do hospitals spend on contract labor each year?
Analyzing financial data from our HospitalView product reveals that the average hospital contract labor spending more than doubled between 2011 and 2020, from $2.23 million to $4.59 million. Hospital spending in 2022 ranges from a few thousand dollars a year to more than $210 million. The average total contract labor expense among the top 20 hospitals is $141 million.
What is contract labor?
Contract labor refers to the hiring of independent contractors. Usually, the hiring organization and the independent contractor must complete a labor agreement contract prior to the start of work.
Employee vs independent contractor
Independent contractors provide their services on a temporary basis and are not hired as full-time employees. Independent contractors within the healthcare industry can help fill in gaps in staffing, thus supporting healthcare organizations’ ability to care for their patient population.
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