Category Archives: Supply Costs

How supply costs have grown at 20 health systems

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https://www.beckershospitalreview.com/finance/how-supply-costs-have-grown-at-20-health-systems.html?origin=CFOE&utm_source=CFOE&utm_medium=email&utm_content=newsletter&oly_enc_id=2893H2397267F7G

On average, supply costs comprise about 10.5% of a hospital’s budget, the American Hospital Association said its May 2 “Cost of Caring” report, citing data from Strata Decision Technology. 

Having adequate and up-to-date medical supplies, devices and equipment are necessary for hospitals to deliver high quality care to patients, AHA said, but “most of these items are expensive to acquire and maintain and rely on increasingly volatile global supply chains.”

Here is a look at how supply costs have grown year over year at 20 hospitals for the quarter ended March 31:

Orlando (Fla.) Health

2023: $302,384,000

2024: $366,542,000 

Increase: 21.2%

ProMedica (Toledo, Ohio)

2023: $60,652,000

2024: $70,739,000

Increase: 16.6%

Norton Healthcare (Louisville, Ky.)

2023: $108,786,000

2024: $126,019,000

Increase: 15.8%

Renown Health (Reno, Nev.)

2023: $70,224,000

2024: $80,459,000

Increase: 14.6%

Banner Health (Phoenix)

2023: $547,407,000

2024: $610,207,000 

Increase: 11.5%

Sanford Health (Sioux Falls, S.D.)

2023: $320,412,000

2024: $357,347,000

Increase: 11.5%

Allegheny Health Network (Pittsburgh) 

2023: $265,424,000

2024: $295,289,000 

Increase: 11.3%

Bon Secours Mercy Health (Cincinnati) 

2023: $608,040,000

2024: $671,213,000

Increase: 10.4%

Henry Ford Health (Detroit)

2023: $387,681,000

2024: $426,960,000

Increase: 10.1%

Premier Health (Dayton, Ohio) 

2023: $111,150,000

2024: $121,494,000

Increase: 9.3%

CommonSpirit (Chicago) 

2023: $1,380,000,000

2024: $1,506,000,000

Increase: 9.1%

Cleveland Clinic

2023: $356,084,000

2024: $384,359,000

Increase: 7.9%

Texas Health Resources (Arlington)

2023: $229,059,000

2024: $247,157,000

Increase: 7.9% 

HonorHealth (Scottsdale, Ariz.)

2023: $112,685,000

2024: $121,326,000

Increase: 7.7%

SSM Health (St. Louis)

2023: $399,185,000

2024: $421,995,000 

Increase: 5.7%

Providence (Renton, Wash.)

2023: $1,103,000,000

2024: $1,161,000,000

Increase: 5.3%

Prime Healthcare (Ontario, Calif.) 

2023: $29,381,000

2024: $30,584,000 

Increase: 4.1%

Intermountain Health (Salt Lake City)

2023: $703,000,000

2024: $731,000,000

Increase: 4%

Ascension (St. Louis) 

2023: $1,011,232,000

2024: $1,043,882,000

Increase: 3.2%

Sharp HealthCare (San Diego) 

2023: $147,430,000

2024: $152,206,000

Increase: 3.2%

Contract labor costs may be easing but still top of mind

Posted on by • Posted in Health System, Hospital, Hospital Industry, Hospital Purchase Managers Index, Institute of Supply Management, Labor Spend Management, Nurse Agency Staffing, Nurse Travelers, Operating Expense Reduction, Operating Expenses, Pharmaceutical Costs, Supply Chain, Supply Costs • Leave a comment
https://www.beckershospitalreview.com/finance/contract-labor-costs-may-be-easing-but-still-top-of-mind-report.html?origin=CFOE&utm_source=CFOE&utm_medium=email&utm_content=newsletter&oly_enc_id=2893H2397267F7G

There may be signs of costs coming down when it comes to contract labor in the healthcare world, but such workforce costs, as well as inflationary and supply pressures, continue to cause anxiety for industry administrators, according to the Institute of Supply Management.

“Employment continued to improve, with comments suggesting hospitals have been able to shift from temporary, agency staffing to permanent employees,” said Nancy LeMaster, chair of the ISM.

However, “the pressure on hospital margins from inflationary conditions and labor and supply costs were top-of-mind concerns.”

The March 2023 Hospital ISM Report on Business, published April 7, registered a Hospital Purchase Managers Index of 53.4 percent in March, the 34th straight month of growth. An index reading above 50 percent indicates that the hospital subsector is generally expanding.

Some shortages persist in the supply chain, particularly with products made from resin, while there has been a shift away from personal protective equipment toward complex medical devices on the inventory side. Prices for supplies and pharmaceuticals generally remain elevated, the ISM said.