How Are Hospitals Faring Financially in 2025?
Hospitals started 2025 with a stable financial performance driven by strong patient volumes, but rising costs for drugs, supplies, and services continue to put major pressure on margins.
Why Hospitals’ Revenue Growth Is Likely to Slow Down in 2025
Hospitals’ operating margins dropped in November due to decreased patient demand levels and continued increases in expenses, according to a new report. One healthcare expert noted that rising expenses will remain a major problem for hospitals throughout 2025.
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Hospital Operating Margins Are Growing — But Not For All
Hospitals’ finances improved in April compared to both the month prior and the same time frame last year, according to a new report from Kaufman Hall. The report also noted that there is a widening gap between the highest- and lowest-performing organizations.
Q1 Was Pretty Good For Hospital Finance — But It’s Unclear If It Will Stay That Way
Hospitals’ operating margins and patient volumes dropped slightly in March. While hospitals were doing relatively well financially during the first quarter of the year, this new data could suggest more financial challenges ahead for hospitals. But right now, it’s unclear whether the recent declines in hospitals’ margins and volumes will be short- or long-term.
How Hospitals Can Keep Their Financial Momentum Going
The hospital sector's financial performance in November showed signs of continued stabilization and growth, according to Kaufman Hall’s latest monthly report. Hospitals should "take advantage of the relative stability and re-embrace strategic growth if they hope to see continued success in 2024," stated Erik Swanson, one of the report's authors.
Debunking Healthcare’s Recession-Proof Reputation
During past recessions, the healthcare sector remained relatively immune to economic downswings — but things are different now that a sweeping labor shortage and lower patient volumes have been added to the mix.
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Hospitals’ Operating Margins Fell In July After 4 Months of Growth
Hospital finances worsened in July as volumes dropped, according to a new report. Following four months of growth, hospitals' median year-to-date operating margin index fell 1.3%, down from 1.4% in June. Hospital finances still remained in a better place than they were last year, given hospitals’ median operating margins were -0.98% in July 2022.
HCA, Tenet Saw Increased EBITDA in Q1 While Nonprofit Hospitals Continued to Struggle
The nation’s two largest for-profit hospital chains — HCA and Tenet — increased their EBITDA as salary and benefit obligations became less burdensome in Q1. Unsurprisingly, the story for nonprofit hospitals is a bit different. For this class of health systems, the stress associated with labor costs is subsiding, but operating margins are having a difficult time bouncing back, according to a new Moody's report.
Report: Hospitals continue to see tight margins as Delta variant raises concerns
Hospital revenues and volumes are on an upswing, but growing expenses are still offsetting gains in these areas, especially as cases caused by the Delta Covid-19 variant continue to rise.
Study: PE firms acquire hospitals with high operating margins, boosting them further
Hospitals acquired by PE firms tend to have higher operating margins than those that are not acquired — and that gap widens over time, a new study shows. But it is too early to say whether these glowing financial figures equate to better support for clinical care.
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Report: Despite some progress, hospital finances remain on shaky ground
Hospital operating margins increased from January to March, but are still narrow, leaving hospitals in a financially vulnerable state, a new report from Kaufman Hall shows. In addition, volumes are still down and expenses continue to rise.
Report: Covid-19 hospitalizations spiked amid falling operating margins in November
The financial futures of U.S. hospitals remain shaky, as Covid-19 cases and hospitalizations surge with alarming speed nationwide. Though vaccines are being distributed, the coming months will be challenging for hospitals, a new report from Kaufman Hall shows.
Hospital, physician practice financial recovery remains unsteady, reports show
Hospitals and physician practices are struggling to regain firm financial footing, and though there have been some recoveries, the landscape continues to be uncertain for these entities, according to reports from healthcare consultancy Kaufman Hall.