Healthcare Insights
Hospitals with the highest operating room costs
Operating rooms (ORs) are a critical resource for hospitals as they provide the space and equipment to perform surgeries and other intensive procedures. While ORs typically generate a significant portion of a hospital’s revenue, the OR also tends to be one of the most expensive areas of the hospital.
Here are the hospitals that spend the most money on running their operating rooms.
Rank | Hospital name | City | State | OR total costs | Explore dataset |
---|---|---|---|---|---|
1 | NewYork-Presbyterian Weill Cornell Medical Center | New York | NY | $746.3 M | Explore |
2 | Mayo Clinic Hospital - Saint Marys Campus | Rochester | MN | $452.7 M | Explore |
3 | Massachusetts General Hospital | Boston | MA | $391.2 M | Explore |
4 | Hospital for Special Surgery | New York | NY | $357.5 M | Explore |
5 | UCSF Helen Diller Medical Center at Parnassus Heights | San Francisco | CA | $318.2 M | Explore |
6 | Lenox Hill Hospital | New York | NY | $302.4 M | Explore |
7 | Houston Methodist Hospital (FKA the Methodist Hospital) | Houston | TX | $296.3 M | Explore |
8 | Tisch Hospital | New York | NY | $295.9 M | Explore |
9 | University Hospital | Ann Arbor | MI | $283.6 M | Explore |
10 | Stanford Hospital - 300 Pasteur Dr | Stanford | CA | $283.4 M | Explore |
11 | Vanderbilt University Medical Center | Nashville | TN | $261.3 M | Explore |
12 | Yale New Haven Hospital | New Haven | CT | $249.0 M | Explore |
13 | The Mount Sinai Hospital (AKA Mount Sinai Medical Center) | New York | NY | $248.7 M | Explore |
14 | AdventHealth Orlando (FKA Florida Hospital Orlando) | Orlando | FL | $247.3 M | Explore |
15 | Inova Fairfax Hospital (AKA Inova Fairfax Medical Campus) | Falls Church | VA | $233.7 M | Explore |
16 | Cleveland Clinic Main Campus | Cleveland | OH | $223.5 M | Explore |
17 | Memorial Hermann - Texas Medical Center | Houston | TX | $222.2 M | Explore |
18 | UAB Hospital | Birmingham | AL | $219.3 M | Explore |
19 | The University of Kansas Hospital | Kansas City | KS | $208.5 M | Explore |
20 | IU Health Methodist Hospital | Indianapolis | IN | $207.4 M | Explore |
Which hospitals spend the most on operating room costs?
NewYork Presbyterian/Weill Cornell Medical Center spends the most on its ORs, with total operating room costs coming in at $746 million. Mayo Clinic Hospital – Saint Mary’s Campus has the second highest total operating room costs with just over $453 million, and Massachusetts General is in third place with nearly $391 million.
Overall, the 20 hospitals on this list spent nearly $6 billion on total operating room costs. The average total operating room costs for hospitals on the list is $302 million.
The wide variance in cost per operating room is not driven by any single factor. Some drivers of operating room expense include highly specialized equipment, facility fees, types of surgery performed, and salaries for surgeons and anesthesiologists – all of which can vary greatly between state and even hospital network.
Operating room expenses are one of the largest contributors to the total operating expenses for hospitals, and the average tends to be higher in the northeast, which might be why three of the top five hospitals on the list above are in New York and Massachusetts. In fact, NewYork Presbyterian/Weill Cornell Medical Center also tops the list of hospitals with the highest total operating expenses.
How many operating rooms do the hospitals with the highest operating room costs have?
The average number of ORs for hospitals on the list is 20. In comparison, the average number of ORs in all active hospitals in the HospitalView product is seven.
Interestingly, the number of ORs does not appear to correlate to higher total operating room costs. Hospitals with as many as 78 operating rooms to as few as 11 are included on the list.
Why do hospitals spend so much money on operating rooms?
The reasons behind why hospitals spend so much on operating rooms can vary. Some of the key expenses for operating rooms include salary costs, supplies, equipment and facility space. ORs require expensive equipment such as operating room tables, anesthesia machines, and other surgical devices that can add to the total hospital spend. Additionally, ORs need to be sanitized frequently for patient safety which can add to the expense.
What is an operating room?
An operating room, sometimes referred to as an OR, operating theater or surgical theater, is an area of a hospital where surgical procedures are carried out in a sterilized environment. An operating room typically contains medicines, equipment, and other supplies that surgeons and anesthesiologists need during an operation. ORs are designed with different specifications to meet the unique needs of a hospital and its patient populations.
Learn more
Healthcare Insights are developed with healthcare commercial intelligence from the Definitive Healthcare platform. Want even more insights? Start a free trial now and get access to the latest healthcare commercial intelligence on hospitals, physicians and other healthcare providers.