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Supply chain spending is currently the second largest cost for health systems and is projected to surpass labor costs to be hospitals’ greatest expense by 2020. According to Definitive Healthcare data, the top 25 hospitals with the highest total medical & surgical supply costs spent a total of over $14.2 billion in 2018, with an average annual spend of $569 million in 2018.

The top 25 hospitals with the highest laundry & linen services spend in 2018 reported total costs of over $157 million, with an average spend of $6.3 million.

Spending on medical and surgical supplies is particularly discretionary in hospitals and other care facilities, with individual physicians requesting their preferred items. These physician preference items can be more expensive than alternative supplies, and do not necessarily lead to improved care outcomes. Supply costs can be minimized without sacrificing clinical quality, and individual physicians can take responsibility for their personal spending, making them the primary target of hospitals and care facilities looking to lower overall operating costs.

A recent study by consulting company Navigant found that the average hospital could save $11 million on annual spending by streamlining their supply chains. Additionally, it found that health systems with more efficient supply chain systems and costs also had higher value-based purchasing and HAC performance.

Where hospitals often lose out on savings is in their inventory management systems — more than 75 percent of U.S. hospitals still rely on manual inventory management rather than an electronic system. Manual inventory management cannot always account for how long medical devices and other supplies have been sitting unused, how often each type of device is ordered, clinical effectiveness, and more. This disorganization leads to overspending and, and could lead to unfavorable clinical outcomes.

The following lists detail the top 25 with the highest medical & surgical supply costs and the top 25 hospitals with the highest laundry & linen services costs in 2018.

Top 25 Hospitals by Medical/Surgical Supply Costs

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Hospital NameDefinitive IDTotal Supply CostsNet Patient RevenueStaffed BedsExplore This Dataset
1.Cleveland Clinic Main Campus3120$807,790,898 $5,164,424,360 1,285Explore This Profile
2.University of Texas MD Anderson Cancer Center4017$802,699,169 $3,480,505,919 674Explore This Profile
3.University Hospital2096$759,414,435 $3,296,778,854 931Explore This Profile
4.NewYork-Presbyterian/Weill Cornell Medical Center541974$716,321,119 $5,340,902,266 862Explore This Profile
5.AdventHealth Orlando 873$713,442,407 $3,769,768,374 2,753Explore This Profile
6.IU Health Methodist Hospital1365$684,360,251 $2,851,732,979 1,226Explore This Profile
7.NYU Langone Tisch Hospital2843$675,744,563 $4,101,296,000 725Explore This Profile
8.Stanford Hospital588$653,161,999 $4,132,132,686 447Explore This Profile
9.Duke University Hospital2973$645,814,821 $2,339,265,283 954Explore This Profile
10.UK Albert B Chandler Hospital274110$560,162,949 $1,433,168,657 524Explore This Profile
11.UCSF Helen Diller Medical Center at Parnassus Heights560$531,809,799 $3,620,962,130 782Explore This Profile
12.Mount Sinai Medical Center 2837$523,063,874 $2,683,297,481 1,067Explore This Profile
13.Vanderbilt University Medical Center3742$519,171,334 $3,442,776,569 626Explore This Profile
14.Mayo Clinic Hospital - Saint Marys Campus2191$504,590,000 $2,584,637,894 1,115Explore This Profile
15.Norton Hospital1678$504,329,397 $1,948,330,283 340Explore This Profile
16.UC San Diego Medical Center - Hillcrest550$496,129,883 $1,842,794,494 381Explore This Profile
17.Methodist University Hospital3818$489,257,582 $1,847,831,390 617Explore This Profile
18.Orlando Health Orlando Regional Medical Center872$484,884,980 $2,319,178,866 808Explore This Profile
19.Barnes-Jewish Hospital2442$478,815,570 $2,028,038,828 1,272Explore This Profile
20.Hackensack University Medical Center2645$470,084,181 $1,674,633,238 687Explore This Profile
21.Dana Farber Cancer Institute1978$469,196,673 $1,130,077,403 30Explore This Profile
22.The Johns Hopkins Hospital1914$454,319,095 $2,041,319,447 1,007Explore This Profile
23.Northside Hospital Atlanta1000$437,773,455 $2,081,577,841 536Explore This Profile
24.Brigham and Womens Hospital1969$434,118,183 $2,257,366,198 804Explore This Profile
25.UNC Medical Center3015$429,106,111 $1,846,906,307 771Explore This Profile

Fig 1. Data from Definitive Healthcare based on July 2019 Medicare Cost Report release; the next scheduled Medicare Cost Report release is October 2019.

Top 25 Hospitals by Laundry & Linen Expenditures

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Hospital NameDefinitive IDTotal Linens CostsNet Patient RevenueStaffed BedsExplore This Dataset
1.NewYork-Presbyterian/Weill Cornell Medical Center541974$12,477,564$5,340,902,266862Explore This Profile
2.Cleveland Clinic Main Campus3120$11,039,879$5,164,424,3601,285Explore This Profile
3.Montefiore Hospital - Moses Campus273024$8,779,466$2,728,344,0001,449Explore This Profile
4.NYU Langone Tisch Hospital2843$7,341,042$4,101,296,000725Explore This Profile
5.Cedars-Sinai Medical Center430$7,163,881$3,140,742,831880Explore This Profile
6.Memorial Hermann Southwest Hospital274147$6,965,548$1,438,856,241547Explore This Profile
7.Ronald Reagan UCLA Medical Center395$6,759,698$1,785,028,754445Explore This Profile
8.UCSF Helen Diller Medical Center at Parnassus Heights560$6,351,378$3,620,962,130782Explore This Profile
9.Hartford Hospital718$6,133,995$1,230,702,224729Explore This Profile
10.Memorial Hermann - Texas Medical Center4018$6,071,580$1,613,167,123993Explore This Profile
11.Wake Forest Baptist Medical Center2976$6,060,459$1,579,971,117797Explore This Profile
12.UF Health Shands Hospital756$5,756,743$1,458,878,312742Explore This Profile
13.Rhode Island Hospital3603$5,651,764$1,228,268,163622Explore This Profile
14.St Josephs Hospital814$5,579,084$1,230,803,965527Explore This Profile
15.Aurora St Lukes Medical Center of Aurora Health Care Metro4534$5,496,552$1,428,003,637854Explore This Profile
16.Hackensack University Medical Center2645$5,190,262$1,674,633,238687Explore This Profile
17.Long Island Jewish Medical Center2828$5,188,740$2,448,878,160524Explore This Profile
18.LAC & USC Medical Center476$5,173,285$813,656,534594Explore This Profile
19.Loma Linda University Medical Center519$5,106,893$1,512,924,248507Explore This Profile
20.Methodist Hospital3862$5,064,850$1,499,642,5231,548Explore This Profile
21.The Johns Hopkins Hospital1914$5,001,430$2,041,319,4471,007Explore This Profile
22.Jackson Memorial Hospital845$4,931,996$1,166,828,6851,457Explore This Profile
23.Beth Israel Deaconess Medical Center1970$4,858,331$1,394,488,878679Explore This Profile
24.Mission Hospital - Asheville2948$4,781,144$1,209,452,518665Explore This Profile
25.Huntsville Hospital81$4,633,423$979,683,478844Explore This Profile

Fig 2. Data from Definitive Healthcare based on July 2019 Medicare Cost Report release; the next scheduled Medicare Cost Report release is October 2019.