What percentage of a healthcare organization's budget is typically spent on supplies?

• A. 25-30%
• B. 5-10%
• C. 50-60%
• D. 0-5%

Answer: (A)

In healthcare budgeting, understanding how costs are distributed helps you see where supplies fit in. The usual share spent on medical and consumable supplies is about a quarter to a third of the budget, roughly 25–30%. This reflects the need for ongoing disposables, sterile items, and other non-labor items used in patient care, plus some equipment and maintenance, while labor and facilities generally consume larger portions. Spending around 50–60% on supplies would imply supplies dominate the budget, which is not typical, and 0–5% or 5–10% would understate how much is needed for routine patient care. So the 25–30% range best matches common budgeting patterns.