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Year Supplies Expenses Total Deductions
1982 $460,994,278 $2,806,887,860
1983 495,309,714 3,003,382,379
1984 511,832,402 3,112,503,386
1985 573,913,170 3,942,358,533
1986 674,200,054 4,650,746,958
1987 648,445,800 4,501,953,880
1988 561,721,210 3,655,162,924
Petitioners reported the following supplies expenses and total
expenses on their books for the years ended 1981 through 1986:
Year Supplies Expenses Total Expenses
1981 $282,265,685 $1,481,029,776
1982 405,666,204 2,229,237,905
1983 435,068,134 2,316,952,040
1984 453,784,846 2,454,214,828
1985 511,141,278 2,968,564,755
1986 583,139,057 3,364,050,625
For taxable years ended 1981 through 1986, the cost of
medical supplies compared to total hospital expenses, including
amortization and depreciation, and compared to total revenue is
as follows:
Percent of Supplies Percent of Supplies
Year to Total Expenses to Total Revenue
1981 15.76% 15.19%
1982 15.28 14.08
1983 15.47 13.80
1984 15.02 13.36
1985 13.56 12.73
1986 13.17 12.29
Hospital Billing Practices
The format for hospital bills used by petitioners' hospitals
follows the outline of a uniform bill developed by the health
insurance industry in conjunction with the Health Care Financing
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