On average, supply costs accounted for 13% of a hospitals’ expenses in 2024, according to the American Hospital Association’s annual “Cost of Caring” report released April 30.
In 2024, total hospital expenses grew 5.1%, outpacing the overall inflation rate of 2.9% according to the report.
“Though expense growth has started to slow in 2025, it remains elevated — particularly
in areas driven by labor and supply chain pressures,” the report said.
Here is a look at how supply costs have grown year over year at 20 hospitals for the quarter ended March 31:
Allegheny Health Network (Pittsburgh)
Q1 patient care supply costs: $335.5 million (+13.6 YOY)
Allina Health (Minneapolis)
Q1 supply and service costs: $434.1 million (+27.8% YOY)
Banner Health (Phoenix)
Q1 supply costs: $656.1 million (+7.5% YOY)
BayCare Health System (Clearwater, Fla.)
Q1 supply costs: $301.7 million (+10.5% YOY)
Bon Secours Mercy Health (Cincinnati)
Q1 supply costs: $695.3 million (+3.6% YOY)
Cleveland Clinic
Q1 supply costs: $387.4 million (+0.8% YOY)
CommonSpirit (Chicago)
Q3 supply costs: $1.6 billion (+5.4% YOY)
Corewell Health (Grand Rapids, Mich.)
Q1 supply and other costs: $1.1 billion (+9.6% YOY)
Legacy Health (Portland, Ore.)
Q4 supply costs: $122.4 (+13.8% YOY)
Mayo Clinic (Rochester, Minn.)
Q1 supply and service costs: $1.7 billion (+12.2% YOY)
McLaren Health Care (Grand Blanc, Mich.)
Q2 supply costs: $457.6 million (+8.3% YOY)
Montefiore Health System (New York City)
Q1 supplies and other expenses: $718.3 (+2.8% YOY)
Northwell Health (New Hyde Park, N.Y.)
Q1 supplies and expenses: $1.5 billion (+6.7% YOY)
Norton Healthcare (Louisville, Ky.)
Q1 supply costs: $136.8 million (+8.2% YOY)
ProMedica (Toledo, Ohio)
Q1 supply costs: $71.2 million (+0.6% YOY)
Providence (Renton, Wash.)
Q1 supply costs: $1.3 billion (+8.5% YOY)
Scripps Health (San Diego)
Q2 supply costs: $214.9 million (+7.1% YOY)
Sharp HealthCare (San Diego)
Q2 supply costs: $179.8 million (+18.1% YOY)
SSM Health (St. Louis)
Q1 supply costs: $462.8 million (+9.6% YOY)
UnityPoint Health (West Des Moines, Iowa)
Q1 supply costs: $275.4 million (+14.2% YOY)
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
