Every operator knows medical supplies are essential — but few stop to quantify what they actually represent within a facility’s financial picture. This analysis looks at what typical senior care and skilled nursing operators spend each year, how those numbers are distributed, and what factors shape the range.
1️⃣ The Supply & Equipment Slice of the Budget
Across U.S. senior care and skilled nursing facilities, medical supplies and equipment typically represent 4–6% of total operating expenses.
- For a 100-bed skilled nursing facility, that equates to $400,000–$600,000 per year.
- In higher-acuity or specialty units (ventilator, wound care, subacute rehab), spending often rises to 7–8%.
- Lower-acuity or assisted living communities generally fall closer to 2–4%.
While labor and food costs fluctuate more dramatically, supply spending has remained relatively consistent as a percentage of total operating expense, even as unit costs rise.
2️⃣ Typical Spending by Category
|
Category |
Average Share of Total Expense |
Example Range (100-bed facility) |
|
Nursing & disposable supplies |
2.5–3.5% |
$225K–$325K |
|
DME & equipment (beds, lifts, diagnostics, respiratory) |
1–2% |
$100K–$200K |
|
PPE & infection control |
0.5–1% |
$50K–$100K |
|
Therapy & rehab supplies |
0.5% |
$40K–$60K |
|
Total |
4–6% |
$400K–$600K annually |
This data reflects direct care-related categories, excluding dietary, housekeeping, and administrative expenses.
3️⃣ What Drives the Differences
Not all spending profiles are created equal. Several operational and demographic factors influence total supply and equipment costs:
- Payer mix: Medicaid-heavy facilities operate leaner, while Medicare and subacute units require higher supply intensity.
- Occupancy & acuity: Low census skews per-resident metrics, while high-acuity residents drive higher equipment utilization.
- Procurement method: Facilities using centralized purchasing, tiered pricing, or vendor consolidation can reduce total spend by 5–15%.
- Equipment lifecycle: Aging capital equipment increases both maintenance and replacement costs.
- Infection control standards: Post-pandemic expectations have permanently increased PPE usage and stock requirements.
4️⃣ The Industry Outlook
Looking ahead, supply and equipment spending is expected to remain stable as a percentage of overall costs but continue rising in absolute dollars due to inflation, product innovation, and enhanced clinical expectations.
Facilities that perform well financially tend to share a few habits:
- They track utilization trends instead of relying on static budgets.
- They standardize product selection to reduce SKU overlap.
- They monitor vendor performance for delivery, pricing, and consistency.
5️⃣ Takeaway
Medical supplies and equipment make up one of the largest controllable expense categories in senior care — often ranking just behind labor, food, and maintenance. Understanding spend patterns isn’t about cutting — it’s about control, visibility, and long-term stability in an environment where every percentage point matters.