Top hospitals by medical and linen supply costs

Supply chain costs account for a large portion of hospital expenses, averaging about 14% of total hospital operating expenses. These costs include not only necessary medical and surgical supplies, pharmaceuticals, medical devices and personal protective equipment (PPE), but also purchased services like food preparation or laundry and linens.

Supply costs are impacted by external factors like rising pharmaceutical prices, as well as internal expenses like physician preference items (PPIs). Though PPI spending and medical supply expenses are more discretionary than other hospital expenses, supply chain spending has been on an upward trend since at least 2014. According to data from the Definitive Healthcare HospitalView product, total supply expenses at U.S. hospitals increase by about 5% each year.

Below, we've compiled lists of the top 25 hospitals by medical and surgical supply costs and the top 25 hospitals by laundry and linen expenditures. These metrics are updated annually from Medicare Cost Report data.

Top 25 hospitals by total medical and surgical supply costs

RankDefinitive IDHospital nameLocationTotal med/surg supply costsSupply expense as % of operating expense
12843Tisch HospitalNew York, NY$1,194,325,98818.1%
22096University HospitalAnn Arbor, MI$1,125,022,18028.2%
3588Stanford HospitalStanford, CA$1,061,485,70320.2%
44017University of Texas MD Anderson Cancer CenterHouston, TX$950,960,97023.4%
5541974NewYork-Presbyterian/Weill Cornell Medical CenterNew York, NY$887,239,95312.3%
63120Cleveland Clinic Main CampusCleveland, OH$874,387,82214.0%
7274110UK Albert B Chandler HospitalLexington, KY$850,165,98840.5%
81365IU Health Methodist HospitalIndianapolis, IN$832,537,69321.5%
92973Duke University HospitalDurham, NC$793,288,58529.7%
103015UNC Medical CenterChapel Hill, NC$776,915,14736.3%
11550UC San Diego Medical CenterSan Diego, CA$738,938,82928.9%
12873AdventHealth OrlandoOrlando, FL$733,183,19018.5%
131000Northside Hospital AtlantaAtlanta, GA$718,927,13327.2%
14872Orlando Health Orlando Regional Medical CenterOrlando, FL$715,021,85332.6%
15851Sylvester Comprehensive Cancer CenterMiami, FL$682,200,47339.8%
16731Yale New Haven HospitalNew Haven, CT$663,855,73718.4%
171978Dana Farber Cancer InstituteBoston, MA$659,801,59829.8%
183742Vanderbilt University Medical CenterNashville, TN$648,822,42312.1%
191678Norton HospitalLouisville, KY$620,871,03830.9%
201631The University of Kansas HospitalKansas City, KS$614,296,97621.4%
211973Massachusetts General HospitalBoston, MA$612,123,06312.9%
223421OHSU Hospital - PortlandPortland, OR$611,593,10228.2%
232976Wake Forest Baptist Medical CenterWinston Salem, NC$606,946,19829.9%
24560UCSF Helen Diller Medical Center at Parnassus HeightsSan Francisco, CA$599,676,16313.1%
252818Strong Memorial HospitalRochester, NY$581,918,91223.5%

Fig. 1 Data is from the Definitive Healthcare HospitalView product and sourced from the Medicare Cost Report. Data accurate as of July 2022.

Which hospital has the highest total medical and surgical supply costs?

Tisch Hospital in New York City has the current highest hospital medical supply costs among U.S. hospitals at nearly $1.2 billion. The hospital’s medical supplies account for 18% of the hospital’s total operating expense.

Many of the hospitals on the list are among the top hospitals by net patient revenue and include academic medical centers and cancer centers.

The average total medical and surgical supply expense for these hospitals is $766 million, or about 25% of total operating expenses. However, supply expense as a percentage of total hospital operating expense ranges from 12% to more than 40% at these facilities.

How much does a hospital spend on supplies?

The average total medical supply expense for 5,660 hospitals in HospitalView is $37 million. Since 2016, average hospital supply expenses increased from about $25 million.

What is included in total hospital supply costs?

Total hospital supply costs include:

It also includes overhead costs such as:

Top 25 hospitals by laundry and linen expenditures

RankDefinitive IDHospital nameLocationLaundry and linen service costsTotal operating expenses
1541974NewYork-Presbyterian/Weill Cornell Medical CenterNew York, NY$14,938,884$7,240,896,211
22973Duke University HospitalDurham, NC$12,393,008$2,672,551,167
32843Tisch HospitalNew York, NY$9,621,747$6,589,073,756
4273024Montefiore Hospital - Moses CampusBronx, NY$8,853,845$4,346,224,000
5560UCSF Helen Diller Medical Center at Parnassus HeightsSan Francisco, CA$7,856,280$4,575,166,953
6430Cedars-Sinai Medical CenterLos Angeles, CA$7,817,976$3,609,143,674
7476LAC & USC Medical CenterLos Angeles, CA$7,454,300$1,942,259,632
8718Hartford HospitalHartford, CT$7,143,779$1,824,344,024
9873AdventHealth Orlando (FKA Florida Hospital Orlando)Orlando, FL$6,862,343$3,960,690,702
102976Wake Forest Baptist Medical CenterWinston Salem, NC$6,703,964$2,031,516,522
113603Rhode Island HospitalProvidence, RI$6,635,077$1,680,513,298
12756UF Health Shands Hospital (FKA Shands at the University of Florida)Gainesville, FL$6,535,447$1,745,366,986
13395Ronald Reagan UCLA Medical CenterLos Angeles, CA$6,500,118$2,231,161,832
141772Ochsner Medical Center - Main CampusNew Orleans, LA$6,444,429$1,935,025,818
154018Memorial Hermann - Texas Medical CenterHouston, TX$6,312,436$2,076,993,632
163862Methodist HospitalSan Antonio, TX$6,177,265$1,537,440,683
171970Beth Israel Deaconess Medical CenterBoston, MA$5,957,803$1,982,122,409
18814St Josephs HospitalTampa, FL$5,894,212$1,175,294,512
19519Loma Linda University Medical CenterLoma Linda, CA$5,784,547$1,372,989,699
204534Aurora St Lukes Medical Center of Aurora Health Care MetroMilwaukee, WI$5,766,627$1,548,591,438
21996Grady Health System (AKA Grady Memorial Hospital Corporation)Atlanta, GA$5,322,348$1,394,730,484
22845Jackson Memorial HospitalMiami, FL$5,309,403$2,312,392,215
2381Huntsville HospitalHuntsville, AL$5,303,087$1,104,326,328
242828Long Island Jewish Medical CenterNew Hyde Park, NY$5,250,219$3,160,716,052
254529Froedtert HospitalMilwaukee, WI$5,140,581$1,932,341,837

Fig. 2 Data is from the Definitive Healthcare HospitalView product and sourced from the Medicare Cost Report. Data accurate as of July 2022.

Which U.S. hospital has the highest total linen costs?

New York/Presbyterian Weill Cornell Medical Center had the highest total linen costs with a reported total of nearly $15 million. This is a top hospital in New York and a leading academic medical center.

Duke University Hospital in Durham, North Carolina had laundry and linen costs that are more than $12 million. The 25 hospitals on this list had an average laundry and linen service expense of $7.1 million.

How much does a hospital spend on laundry and linens?

The average cost for hospital laundry and medical linen services is about $489,000, based on 4,855 hospitals with this figure reported in HospitalView.

What is included in laundry and linen costs?

The laundry and linen cost center metric represents the cost of routine hospital laundry and linen services whether performed in-house or by outside contractors.

Learn more

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.

Explore our data