We analyzed 5,480 hospital cost reports. Supply spending varies 3-7x (andrewrexroad.substack.com)

An analysis of 5,480 US hospitals’ CMS cost reports finds large, case-mix-adjusted variation in supply spending, with efficient hospitals using far less than peers (up to ~3–8x differences by bed size) and no clear link to quality or outcomes. The author estimates about $28–29B in “addressable” supply waste (rising in FY2024 to $177.6B total supply spending), attributing much of it to procurement incentives, operating-room preference bloat and implant price dispersion, and disposal of items based on labeled expiration dates. The piece also estimates several billion dollars per year in donated medical supplies flowing through nonprofits, arguing hospitals may be buying and discarding more than they use rather than efficiently purchasing supplies.