Hospital indirect expenses mount: 20 statistics by department

Purchased services spending has increased across all departments in recent years and health systems are taking a closer look at the data to identify trends and opportunities to improve vendor contract management.

Kaufman Hall gathered monthly spending data by department to break down recent trends and found big upticks in financial and accounting, marketing and IT spending. Here is the average monthly change in spend by department:

Acute care hospitals

• Facilities: 6%
• Financial and accounting: 9.5%
• Healthcare technology management: 7%
• Human resources: 8.5%
• Information technology: nearly 8%
• Marketing: 11%
• Materials management: 5%
• Patient care services: 5%
• Support services: 5.5%
• Utilities: 6.5%

Academic medical centers

• Facilities: 8.5%
• Financial and accounting: nearly 12%
• Healthcare technology management: 8.2%
• Human resources: 9%
• Information technology: nearly 8%
• Marketing: 18%
• Materials management: 4.5%
• Patient care services: 9%
• Support services: 6.5%
• Utilities: 8.5%

“As the industry evolves and margins continue to decline, the success of a health system’s financial sustainability may depend on how they strategically and thoughtfully manage indirect expenses,” wrote Blaine Douglas, Vizient senior vice president and general manager of indirect spend and purchased services, wrote in the article. “Thoughtful stewardship requires more than occasional audits or reactive decisions — it demands a coordinated, data-informed approach that spans departments, aligns with organizational goals and adapts to changing market dynamics.”

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