On average, supply costs accounted for 13% of 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 health systems for the quarter ended June 30:
Allegheny Health Network (Pittsburgh)
Q2 patient care supply costs: $358 million (+15.8 YOY)
Allina Health (Minneapolis)
Q2 supply and service costs: $467.3 million (+18.8% YOY)
Altru (Grand Forks, N.D.)
Q2 supply and pharmaceutical costs: $48.7 million (+8.5% YOY)
Baptist Health South Florida (Coral Gables)
Q3 supply costs: $336.6 million (+13.7% YOY)
Bon Secours Mercy Health (Cincinnati)
Q2 supply costs: $725 million (+6.5% YOY)
Children’s Healthcare of Atlanta
Q2 supply costs: $88.5 million (+14.7% YOY)
Children’s Health System of Texas (Dallas):
Q2 medical supply costs: $99.9 million (+31.1% YOY)
Cleveland Clinic
Q2 supply costs: $419.3 million (+6.7% YOY)
Dartmouth Health (Lebanon, N.H.)
Q4 medical supply and medication costs: $260.2 million (+23.8% YOY)
HCA Healthcare (Nashville, Tenn.)
Q2 supply costs: $2.8 billion (+8% YOY)
Legacy Health (Portland, Ore.)
Q1 supply costs: $116.3 million (+1% YOY)
Mass General Brigham (Somerville, Mass.)
Q3 supply and other costs: $1.7 billion (+20.6% YOY)
Mayo Clinic (Rochester, Minn.)
Q2 supply and service costs: $1.8 billion (+10.8% YOY)
Norton Healthcare (Louisville, Ky.)
Q2 supply costs: $136.9 million (+6.3% YOY)
Northwell Health (New Hyde Park, N.Y.)
Q2 supplies and expenses: $1.5 billion (+11.3% YOY)
Scripps Health (San Diego)
Q3 supply costs: $219 million (+3% YOY)
Sharp HealthCare (San Diego)
Q3 supply costs: $187.1 million (+17.4% YOY)
SSM Health (St. Louis)
Q2 supply costs: $491.9 million (+9.9% YOY)
Tenet Healthcare (Dallas)
Q2 supply costs: $932 million (+2.6% YOY)
UnityPoint Health (West Des Moines, Iowa)
Q2 supply costs: $286.9 million (+11.8% 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.
