10 New York hospitals with the highest IT budget
Health information technology (IT) benefits patients and providers alike. Software tools like electronic health records (EHR) and health information exchanges (HIE) help protect patient privacy, reduce medical errors, and potentially save time and reduce costs.
However, purchasing and installing hardware and software can be costly, meaning that it’s important for healthcare providers to budget accordingly and be selective about which technology to invest in.
Below, we rank the top ten hospitals across the state of New York by their IT operating budget.
Top 10 New York hospitals by IT operating budget
||Est. IT Operating Expense Budget
||Net Patient Revenue
||# of Staffed Beds
|New York-Presbyterian/Weill Cornell Medical Center
|Memorial Sloan Kettering Cancer Center
|Montefiore Hospital - Moses Campus
|Long Island Jewish Medical Center
||New Hyde Park
|North Shore University Hospital
|Mount Sinai Medical Center (AKA the Mount Sinai Hospital)
|Strong Memorial Hospital
|Stony Brook University Hospital
|Lenox Hill Hospital
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 August 2022.
New York-Presbyterian/Weill Cornell Medical Center ranks number one on our list with an estimated IT operating budget of more than $250 million. In second place is Tisch Hospital with a budget of more than $230 million. Memorial Sloan Kettering Cancer Center ranked third and has a considerably leaner IT operating budget, at $169,813,820. This hospital also has significantly less net patient revenue and beds than the top two on our list, making size a possible indicator of the overall IT budget.
Note that our analysis here is focused solely on hospitals in New York. You can stay up to date on the latest trends in IT operating budgets at hospitals across the U.S. by reading our Healthcare Insight here.
How much do hospitals spend on software?
How much a hospital may spend on software or IT will depend on multiple factors, like the facility’s location, the number of patients it serves, and its specific need.
Even though an EHR platform is just one component of a hospital’s IT infrastructure, it may be one of the most costly and significant expenditures a facility makes. In 2018, Mayo Clinic completed a $1.5 billion implementation of Epic’s EHR across all its care sites. Of note, the top three hospitals on our list all use Epic, which you see here.
For smaller hospitals and IDNs, facilities can still expect to pay tens of thousands of dollars per user. HealthIT.gov states that purchasing and installing an EHR system can range from $15,000 to $70,000 per provider.
In addition to purchasing the software, hospitals will also need to budget appropriately for training, maintenance fees, data migration costs, and other expenses.
What is a typical IT budget at a New York hospital?
In the Definitive Healthcare HospitalView product, IT operating budget is a proprietary calculation based on a facility’s size and services as well as data from the Medicare Cost Report like hospital operating expenses.
Across the 311 hospitals in New York, the average IT operating expense budget is about $19,671,805. This is more than double the national average hospital IT budget of $7.7 million.
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