Healthcare Insights

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 expenseExplore dataset
    12843Tisch HospitalNew York, NY$1,194,325,988 18.10%Explore
    22096University HospitalAnn Arbor, MI$1,125,022,180 28.20%Explore
    3588Stanford HospitalStanford, CA$1,061,485,703 20.20%Explore
    44017University of Texas MD Anderson Cancer CenterHouston, TX$950,960,970 23.40%Explore
    5541974NewYork-Presbyterian/Weill Cornell Medical CenterNew York, NY$887,239,953 12.30%Explore
    63120Cleveland Clinic Main CampusCleveland, OH$874,387,822 14.00%Explore
    7274110UK Albert B Chandler HospitalLexington, KY$850,165,988 40.50%Explore
    81365IU Health Methodist HospitalIndianapolis, IN$832,537,693 21.50%Explore
    92973Duke University HospitalDurham, NC$793,288,585 29.70%Explore
    103015UNC Medical CenterChapel Hill, NC$776,915,147 36.30%Explore
    11550UC San Diego Medical CenterSan Diego, CA$738,938,829 28.90%Explore
    12873AdventHealth OrlandoOrlando, FL$733,183,190 18.50%Explore
    131000Northside Hospital AtlantaAtlanta, GA$718,927,133 27.20%Explore
    14872Orlando Health Orlando Regional Medical CenterOrlando, FL$715,021,853 32.60%Explore
    15851Sylvester Comprehensive Cancer CenterMiami, FL$682,200,473 39.80%Explore
    16731Yale New Haven HospitalNew Haven, CT$663,855,737 18.40%Explore
    171978Dana Farber Cancer InstituteBoston, MA$659,801,598 29.80%Explore
    183742Vanderbilt University Medical CenterNashville, TN$648,822,423 12.10%Explore
    191678Norton HospitalLouisville, KY$620,871,038 30.90%Explore
    201631The University of Kansas HospitalKansas City, KS$614,296,976 21.40%Explore
    211973Massachusetts General HospitalBoston, MA$612,123,063 12.90%Explore
    223421OHSU Hospital - PortlandPortland, OR$611,593,102 28.20%Explore
    232976Wake Forest Baptist Medical CenterWinston Salem, NC$606,946,198 29.90%Explore
    24560UCSF Helen Diller Medical Center at Parnassus HeightsSan Francisco, CA$599,676,163 13.10%Explore
    252818Strong Memorial HospitalRochester, NY$581,918,912 23.50%Explore

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

    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.

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