Top hospitals by total operating expense

Which hospitals have the highest operating expense?

The top hospital by operating expense is non-profit Tisch Hospital. Part of NYU Langone Health, Tisch Hospital serves a large and densely populated area in New York City, leading to a high volume of patients and medical services provided. It offers a wide range of specialized medical services and advanced treatments, which can be more costly to provide. Additionally, as a major academic medical center, Tisch Hospital is heavily involved in medical research and education. These activities require substantial funding and contribute to higher operating expenses. Operating in New York City, where the cost of living and doing business is high, contributes to higher salaries for staff and higher costs for goods and services. Like the other top hospitals, Tisch Hospital tops other hospital expense lists such as accrued salary expense, operating room costs, and housekeeping expense.

In second place by operating expense is NewYork-Presbyterian Weill Cornell Medical Center. Unsurprisingly, this New York City-based hospital also tops the list of hospitals with the highest accrued salary, housekeeping, and dietary expenses, as well as the lists of hospitals with the highest operating room and medical supply costs. Additionally, New York-Presbyterian Weill Cornell Medical Center is one of the top U.S. hospitals by patient discharges. The high patient volume, as well as high individual expenses, may explain why this hospital tops the list of hospitals with the highest operating expenses.

In third place by operating expense is Cleveland Clinic Main Campus. This hospital also tops the list of hospitals with the highest accrued salary expense. Additionally, it makes the list of hospitals with the highest bed count and highest number of operating rooms. Being able to accommodate so many patients and procedures may be one of the major factors landing this hospital on the list of top hospitals by operating expense.

How does non-profit hospital status influence operating expenses?

The three top hospitals by operating expense listed above are all non-profit hospitals affiliated with major academic medical centers, which invest heavily in medical research and education. They are also located in urban areas. Urban hospitals, whether non-profit or for-profit, generally face higher costs related to staffing, real estate, and facilities maintenance. This is particularly true in cities like New York, where the cost of living is significantly higher. Non-profit hospitals’ focus on community service, research, and education can also contribute to their overall higher operating expenses compared to many for-profit hospitals.

Additionally, these top three hospitals rank as the top three non-profit hospitals by net patient revenue (NPR). Based on the high NPR for these hospitals, it is reasonable to conclude that they see a higher volume of patients, requiring that they have more providers, staff, equipment, and facility space.

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