Where Were the Highest, Lowest Community Hospital Labor Costs in 2010?

Many hospital CFOs know that labor costs constitute the biggest percentage of a hospital's expenditures, but which states have the highest and lowest community hospital labor-to-overall cost ratio?

According to the American Hospital Association's AHA Hospital Statistics — 2012 Edition, community hospitals in Wyoming had the highest labor costs as a percentage of total expenses, while community hospitals in South Carolina had the lowest. In 2010, labor expenses were 58.2 percent of all Wyoming community hospital expenditures ($599.8 million toward payroll and employee benefits), and labor expenses were 46.1 percent of all South Carolina community hospitals expenses ($4.3 billion total).


Here are the five states with the highest and the five states with the lowest community hospital labor costs in 2010, with total labor expenses in parenthesis.

5 States With the Highest Community Hospital Labor Costs in 2010

1. Wyoming — 58.2 percent ($599.8 million)

2. Rhode Island — 57.9 percent ($1.7 billion)

3. New York — 57.4 percent ($32.2 billion)

4. New Hampshire — 57.3 percent ($2.2 billion)

5. Vermont — 57.2 percent ($981.1 million)

5 States With the Lowest Community Hospital Labor Costs in 2010

1. South Carolina — 46.1 percent ($4.3 billion)

2. Kentucky — 47.1 percent ($4.6 billion)

3. Wisconsin — 47.3 percent ($6.7 billion)

4. Missouri — 47.5 percent ($7.8 billion)

5. Oklahoma — 47.7 percent ($3.1 billion)

Related Articles on Hospital Finance:

Community Hospitals Post Record Profit of $52.9B in 2010

Study Shows Hospital Outpatient Costs Higher In States Without Workers' Comp Fee Schedules

Healthcare Spending Slowed in 2010; Grew Only 3.9% to $2.6T

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