Top hospitals by total operating expense

Which hospitals have the highest operating expense?

The top hospital in the U.S. by operating expense is NewYork-Presbyterian Weill Cornell Medical Center. Unsurprisingly, this New York City-based hospital also tops the list of hospitals with the highest accrued salary, housekeeping, and dietary expenses, as well as the lists of hospitals with the highest operating room and medical supply costs. Additionally, New York-Presbyterian Weill Cornell Medical Center is one of the top U.S. hospitals by patient discharges. The high patient volume, as well as high individual expenses, may explain why this hospital tops the list of hospitals with the highest operating expenses.

In second place by operating expense is Cleveland Clinic Main Campus. This hospital also tops the list of hospitals with the highest accrued salary expense (second place). Additionally, it makes the list of hospitals with the highest bed count and highest number of operating rooms. Being able to accommodate so many patients and procedures may be one of the major factors landing this hospital on the list of top hospitals by operating expense.

The third top hospital by operating expense is Tisch Hospital. Like the other top hospitals, Tisch Hospital  tops other hospital expense lists such as accrued salary expense (fifth place), operating room costs (seventh place), and housekeeping expense (second place).

How does non-profit hospital status influence operating expenses?

The three top hospitals by operating expense listed above are all non-profit hospitals. Compared to for-profit healthcare organizations, non-profit healthcare organizations tend to be located in higher-income areas and therefore serve higher-income populations. In these wealthier areas, like New York City where two of the top facilities are located, hospitals are likely to have higher costs for expenses such as salaries, benefits, and facility construction and upkeep, which would all drive higher total operating expenses.

Additionally, these top three hospitals rank as the top three non-profit hospitals by net patient revenue (NPR). Based on the high NPR for these hospitals, it is reasonable to conclude that they see a higher volume of patients, requiring that they have more providers, staff, equipment, and facility space.

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