Supply chain costs are one of the largest expenses for both hospitals and health systems, and can account for up to one-third of total operating expenses at some hospitals. These costs include not only necessary medical and surgical supplies like pharmaceuticals, medical devices, and personal protective equipment (PPE), but also purchased services like food preparation and laundry or linens. 

Supply costs can be impacted by external factors like rising pharmaceutical prices, but internal expenses like physician preference items (PPIs) can also have a significant influence on overall supply chain spending. Though PPI spending and supply costs are more discretionary than other hospital expenses, supply chain spending has been on an upward trend since at least 2014. According to Definitive Healthcare data, U.S. hospitals spent a combined total of $36 billion on medical and surgical supplies in 2018—with an average of $11.9 million per hospital. 

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. 

Top 25 hospitals by medical and surgical supply costs

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Definitive IDHospital NameStateStaffed BedsNumber of DischargesNet Patient RevenueTotal Medical/Surgical Supply CostsExplore This Dataset
1.4017University of Texas MD Anderson Cancer CenterTX67030,374$3,904,060,137$974,164,938Explore This Profile
2.2096University HospitalMI93144,920$3,567,175,560$892,689,742Explore This Profile
3.541974NewYork-Presbyterian/Weill Cornell Medical CenterNY862111,301$5,951,047,108$816,790,000Explore This Profile
4.3120Cleveland Clinic Main CampusOH1,28551,373$5,164,424,360$807,790,898Explore This Profile
5.2843Tisch HospitalNY72565,273$4,605,939,926$765,062,478Explore This Profile
6.588Stanford HospitalCA44726,371$5,120,204,039$761,758,984Explore This Profile
7.873AdventHealth OrlandoFL2,753128,501$3,769,768,374$713,450,154Explore This Profile
8.2973Duke University HospitalNC95943,055$2,472,235,232$691,991,547Explore This Profile
9.1365IU Health Methodist HospitalIN1,22650,673$2,851,732,979$684,360,251Explore This Profile
10.274110UK Albert B Chandler HospitalKY52445,156$1,513,011,079$619,473,346Explore This Profile
11.3742Vanderbilt University Medical CenterTN62661,271$3,820,871,118$582,118,084Explore This Profile
12.550UC San Diego Medical Center - HillcrestCA38133,464$1,960,273,937$577,543,178Explore This Profile
13.560UCSF Helen Diller Medical Center at Parnassus HeightsCA78535,170$3,902,331,848$575,765,328Explore This Profile
14.872Orlando Health Orlando Regional Medical CenterFL80898,707$2,494,725,653$542,074,926Explore This Profile
15.851Sylvester Comprehensive Cancer CenterFL52418,851$1,638,165,592$529,698,011Explore This Profile
16.1978Dana Farber Cancer InstituteMA301,568$1,263,292,503$527,160,793Explore This Profile
17.2837Mount Sinai Medical CenterNY1,06755,420$2,683,297,481$523,063,874Explore This Profile
18.3015UNC Medical CenterNC80337,342$2,034,110,234$522,264,993Explore This Profile
19.1631The University of Kansas HospitalKS84841,549$2,214,762,732$515,263,726Explore This Profile
20.731Yale New Haven HospitalCT58162,598$2,989,374,104$510,641,366Explore This Profile
21.2191Mayo Clinic Hospital - Saint Marys CampusMN1,11558,001$2,584,637,894$504,590,000Explore This Profile
22.1678Norton HospitalKY34073,695$1,948,330,283$504,329,397Explore This Profile
23.2976Wake Forest Baptist Medical CenterNC79736,712$1,689,734,011$492,056,804Explore This Profile
24.2442Barnes-Jewish HospitalMO1,27249,494$2,028,038,828$478,815,570Explore This Profile
25.4310University HospitalVA58528,190$2,004,889,548$473,813,595Explore This Profile

Fig. 1 Data is from Definitive Healthcare's Hospitals & IDNs database. Total supply costs represent the total cost of medical devices, implantable devices, and drugs charged to patients with overhead costs and after adjustments/re-classifications. Financial data is sourced from the July 2020 Medicare Cost Report Release. The next scheduled Cost Report Release is October 2020. Accessed August 2020. 

Which U.S. hospital has the greatest total medical and surgical supply costs? 

University of Texas MD Anderson Cancer Center has the greatest overall medical and surgical supply costs—with just over $974 million in medical and surgical supply costs reported as of July 2020. It's unsurprising that a specialized research facility might report the highest supply costs, especially given the type of expensive, cutting-edge new treatments that a cancer center like this one is likely to provide. 

In fact, almost all of the top 25 hospitals by medical and surgical supply costs are either cancer centers or academic medical centers. Both of these facility types focus on providing advanced treatments and therapies to patients with often highly complex conditions. Due to the nature of the care that these facilities provide, they're more likely to spend more on necessary medical and surgical supply costs than other community hospitals might. 

Top 25 hospitals by laundry & linen expenditures

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Definitive IDHospital NameStateStaffed BedsNumber of DischargesNet Patient RevenueTotal Linen CostsExplore This Dataset
1.541974NewYork-Presbyterian/Weill Cornell Medical CenterNY862111,301$5,951,047,108$14,261,381Explore This Profile
2.3120Cleveland Clinic Main CampusOH1,28551,373$5,164,424,360$11,039,879Explore This Profile
3.273024Montefiore Hospital - Moses CampusNY1,45888,041$2,797,985,000$8,569,311Explore This Profile
4.560UCSF Helen Diller Medical Center at Parnassus HeightsCA78535,170$3,902,331,848$7,840,028Explore This Profile
5.430Cedars-Sinai Medical CenterCA88055,908$3,406,500,651$7,737,121Explore This Profile
6.2843Tisch HospitalNY72565,273$4,605,939,926$7,543,733Explore This Profile
7.395Ronald Reagan UCLA Medical CenterCA44522,945$2,026,970,299$7,218,143Explore This Profile
8.476LAC & USC Medical CenterCA59430,230$2,920,824,261$7,173,912Explore This Profile
9.814St Josephs HospitalFL52751,623$1,271,356,853$6,975,662Explore This Profile
10.718Hartford HospitalCT70244,019$1,411,929,830$6,886,474Explore This Profile
11.2976Wake Forest Baptist Medical CenterNC79736,712$1,689,734,011$6,612,574Explore This Profile
12.3862Methodist HospitalTX1,56083,063$1,629,664,584$5,855,773Explore This Profile
13.4018Memorial Hermann - Texas Medical CenterTX99445,540$1,691,807,422$5,837,838Explore This Profile
14.3603Rhode Island HospitalRI63534,671$1,245,613,490$5,774,873Explore This Profile
15.4534Aurora St Lukes Medical Center of Aurora Health Care MetroWI86839,683$1,475,360,828$5,651,324Explore This Profile
16.519Loma Linda University Medical CenterCA46322,810$1,049,458,133$5,595,267Explore This Profile
17.756UF Health Shands HospitalFL74247,352$1,564,731,842$5,207,982Explore This Profile
18.1914The Johns Hopkins HospitalMD1,00342,755$2,121,133,683$5,192,125Explore This Profile
19.2645Hackensack University Medical CenterNJ68736,706$1,674,633,238$5,190,262Explore This Profile
20.2828Long Island Jewish Medical CenterNY52471,299$2,448,878,160$5,188,740Explore This Profile
21.1970Beth Israel Deaconess Medical CenterMA69439,871$1,439,666,455$5,174,487Explore This Profile
22.3439UPMC PresbyterianPA1,17548,307$1,937,259,793$5,088,768Explore This Profile
23.1772Ochsner Medical Center - Main CampusLA96344,200$1,672,492,206$5,041,297Explore This Profile
24.845Jackson Memorial HospitalFL1,62257,870$1,206,542,643$4,982,652Explore This Profile
25.809Tampa General HospitalFL89852,886$1,311,861,314$4,818,403Explore This Profile

Fig. 2 Data is from Definitive Healthcare's Hospitals & IDNs database. Financial data is sourced from the July 2020 Medicare Cost Report Release. The next scheduled Cost Report Release is October 2020. Accessed August 2020. 

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

As of July 2020, NewYork Presbyterian/Weill Cornell Medical Center had the highest total linen costs—with a reported total of over $14.2 million. Though there is a strong correlation between total number of staffed beds and total linen costs, NewYork Presbyterian does not have the highest total bed count of the hospitals on this list. This hospital did, however, report the greatest number of patient discharges—which likely explains the facility's high linen cost. 

Interestingly, Ronald Reagan UCLA Medical Center and Loma Linda University Medical Center reported both the lowest number of staffed beds and the lowest number of discharges. Despite this, both hospitals report greater total linen costs than other facilities with more staffed beds or discharges. This could indicate an opportunity to optimize laundry and linen expenditures as a way to control overall supply chain spending.