Top 25 hospitals by medical supply costs

Which hospitals have the highest total medical supply costs?

Tisch Hospital in New York City has the highest hospital medical supply costs among U.S. hospitals at $1,609,045,216. Tisch is the main teaching hospital for the NYU Grossman School of Medicine and appears at the top of several other hospital expense lists, including accrued salary expenses, operating room costs, and housekeeping expenses.

In second place is University Hospital in Ann Arbor, Michigan with $1,589,931,888 in total medical supply costs. This facility is the top hospital in the state of Michigan based on net patient revenue and is one of the largest academic medical centers (AMCs) in the nation.

Rounding out the top three is Stanford Hospital, with total medical supply costs reaching $1,541,446,896.

Interestingly, all the top three hospitals on this list are AMCs, meaning that they have integrated with medical schools to provide primary education for medical students and residents. Most AMCs are also teaching hospitals, but not all teaching hospitals are AMCs. This is because AMCs can issue medical degrees while teaching hospitals cannot.

The remaining hospitals on the list are among the top U.S. hospitals by net patient revenue and include many other AMCs and cancer centers.

How to use medical supply costs in your healthcare sales and marketing strategy?

Healthcare sales and marketing professionals can use medical supply cost data to gain a clearer picture of a facility’s operations, budget priorities, and pain points. Hospitals with high or rising supply costs often indicate growing patient volumes, complex case mixes, or inefficiencies within procurement and inventory management. These insights help commercial teams identify high-value prospects—organizations that are more likely to invest in solutions designed to reduce costs, improve efficiency, or modernize their supply chains.

Finally, when integrated into account-based marketing (ABM) strategies, supply cost data enables deeper personalization. Sales teams can reference cost trends in their outreach, tailor ROI discussions around measurable savings, and time their engagements based on shifts in supply spend. In a market where healthcare organizations are under constant pressure to balance quality with cost, using medical supply cost data gives sales and marketing professionals a competitive edge.

What costs hospitals the most money?

The biggest expenses for hospitals are the salaries of their employees. According to HospitalView data, on average, salary expenses account for more than one-third of total hospital operating expenses. The second highest expense for hospitals is medical/surgical supply costs, followed by employee benefits.

Overall, employee-related expenses like salaries, fringe benefits, and contract labor account for nearly half of a hospital’s operating expense, on average.

How much does a hospital spend on supplies?

Based on data from more than 4,100 hospitals in HospitalView, the average total supply expense is $38 million per hospital. On average, hospital supply expenses have increased by more than 6% annually since 2017.

In comparison, the average total medical and surgical supply expense for the 25 hospitals on the list is $849 million, or about 22% of total operating expenses.

What is included in total hospital supply costs?

Total hospital supply costs include:

• Medical/surgical supply costs
• Medical devices
• Implantable devices
• Drugs charged to patients

It also includes overhead costs such as:

• Buildings and fixtures
• Maintenance
• Operation of the facility

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