What are hospitals spending on?
Text version of infographic
- The largest single expense in Canadian hospitals is employee compensation, accounting for nearly two-thirds of all expenses (63.3% in 2020–2021).
- Among direct patient care services, the nursing ward accounts for the largest share of hospital spending at 18.9%, followed by Support Services at 18.4% and Other Diagnostic and Therapeutic Services at 12.7%.
- Since 2005, total hospital spending has grown at an average annual rate of 4%.
By type of expense | 2020–2021 |
---|---|
Compensation | 63.3% |
Supplies | 11.4% |
Sundry | 6.3% |
Equipment | 5.4% |
Drugs in Hospital | 4.9% |
Buildings and Grounds | 4.8% |
Contracted-Out Services | 4.0% |
By service area | 2020–2021 |
---|---|
Nursing Inpatient Services | 18.9% |
Support Services | 18.4% |
Other Diagnostic and Therapeutic | 12.7% |
Research, Education and Other | 10.1% |
Other Ambulatory Care Services | 8.5% |
Operating Room | 6.3% |
Administrative Services | 5.1% |
Intensive Care Nursing Unit | 4.6% |
Emergency | 4.5% |
Medical Imaging | 4.4% |
Community Health Services | 4.3% |
Long-Term Care Nursing Unit | 2.1% |
Note
National totals exclude Quebec and Nunavut.
Source
Canadian MIS Database (current as of March 24, 2022), Canadian Institute for Health Information.
How to cite:
Canadian Institute for Health Information. What are hospitals spending on?. Accessed April 25, 2025.

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