Hospital labor, drug expenses rising: 18 statistics

Rising costs are reshaping the financial landscape for hospitals nationwide, but the impact isn’t uniform.

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From soaring drug expenses in the Great Plains to rising supply costs in the West, regional disparities highlight the unique pressures facing hospital leaders. As labor shortages persist, supply chains fluctuate, and pharmaceutical costs climb, expenses are increasing across the board.

Here is the breakdown of labor, supply and drug expenses per calendar day from 2023-24, based on data from Kaufman Hall’s “National Hospital Flash Report.

National
Labor expenses: 5%
Supply expenses: 9%
Drug expenses: 9%

West
Labor expenses: 6%
Supply expenses: 10%
Drug expenses: 11%

Midwest
Labor expenses: 4%
Supply expenses: 6%
Drug expenses: 8%

South
Labor expenses: 6%
Supply expenses: 9%
Drug expenses: 7%

Northeast / Mid-Atlantic
Labor expenses: 3%
Supply expenses: 7%
Drug expenses: 6%

Great Plains
Labor expenses: 5%
Supply expenses: 10%
Drug expenses: 12%

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