We analyzed 5,480 hospital cost reports. Supply spending varies 3-7x
12 hours ago
- #cost efficiency
- #healthcare waste
- #hospital supplies
- Analysis of CMS data shows $170.9 billion in hospital supply spending for FY2023, with high variance not explained by patient acuity, geography, or ownership.
- Supply waste is driven by procurement inefficiency (e.g., GPO incentives), operating room waste (e.g., preference card bloat), and expiration/disposal (e.g., rigid expiration dates).
- Addressable waste is estimated at $28–$58.9 billion annually; top states include California ($5.3B), Texas ($2.2B), and Florida ($2.0B).
- Proven fixes include reference pricing for implants, GPO fee transparency, OR supply standardization, expiration date reform, and national benchmarking.
- Intermediaries like Premier Inc., Cardinal Health, and Owens & Minor profit from current inefficiencies, while hospitals bear the cost.