A minority of people constitutes a majority of the costs at hospitals, and the same may hold true for spend categories at health systems.
According to a 2011 study (pdf) from American Express, 20 spend categories comprise 80 percent of total account spending within health systems (labor was excluded). American Express analyzed more than $1.65 billion in accounts payable spending at 15 health systems, which mostly had annual revenue of $250 million to $1 billion.
Dental, lab and medical equipment and supplies represented the largest commodity group at 28 percent. Here are the top 10 spend categories at health systems, based on data from the study.
1. Hospital equipment and supplies: 28 percent
2. Medical services and practitioners: 9 percent
3. Management, consulting and public relations services: 6 percent
4. Business services: 5 percent
5. Physicians: 4 percent
6. General contractors (residential and commercial): 4 percent
7. Drugs, drug proprietors and druggists' sundries: 4 percent
8. Utilities (electric, gas, water and sanitary): 2 percent
9. Miscellaneous and specialty retail education: 2 percent
10. Direct marketing: 2 percent
According to a 2011 study (pdf) from American Express, 20 spend categories comprise 80 percent of total account spending within health systems (labor was excluded). American Express analyzed more than $1.65 billion in accounts payable spending at 15 health systems, which mostly had annual revenue of $250 million to $1 billion.
Dental, lab and medical equipment and supplies represented the largest commodity group at 28 percent. Here are the top 10 spend categories at health systems, based on data from the study.
1. Hospital equipment and supplies: 28 percent
2. Medical services and practitioners: 9 percent
3. Management, consulting and public relations services: 6 percent
4. Business services: 5 percent
5. Physicians: 4 percent
6. General contractors (residential and commercial): 4 percent
7. Drugs, drug proprietors and druggists' sundries: 4 percent
8. Utilities (electric, gas, water and sanitary): 2 percent
9. Miscellaneous and specialty retail education: 2 percent
10. Direct marketing: 2 percent
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