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Hospital performance settled into a “new normal” in 2025. Patient volumes continue to grow, and a persistent gap between gross and net operating revenue indicates an eroding payer mix and more uninsured patients.

Despite a decline in hospital performance and volume this month, year-to-date revenue, volume, and margins are still strong compared to prior years.

Hospital volumes remained strong in October, while average length of stay declined, translating to a dip in net revenue per discharge. Bad debt and charity care continue to rise, and staffing levels are tightening.

Hospital operating margins remain stable, but data shows a widespread gap in performance. Patient volumes increased this month in both emergency and inpatient care, while drug expenses continue to rise.

Hospital performance is challenged by a decline in patient volumes and operating margins, increases in uncompensated care, and rising expenses, notably non-labor costs.

Hospital performance is generally stable but has softened in recent months. Expense growth is outpacing revenue growth—as non-labor expenses in particular continue to put pressure on hospitals.

Hospital revenue on a volume adjusted basis increased. However, bad debt rose in June compared to May, outpacing the growth rate of previous months.

Hospital financial indicators were slightly weaker in May than the previous month, with a greater decline in month-over-month outpatient revenue than recorded recently.

Hospital performance improved between January and April, and on a year-to-date basis, performance in the first four months of 2025 compared favorably to the same period in 2024.

Daily patient volumes decreased due to declines in flu and other seasonal infectious diseases, contributing to a decline in hospital care expenses despite elevated overall expenses.

Performance in February has remained stable. Volumes stayed strong, including in emergency departments. Non-labor expenses have been the primary driver of expense growth thus far in 2025.

Hospital performance remains stable at the start of 2025. Inpatient revenue grew more quickly than outpatient revenue in January, and the rate of cost growth has slowed considerably.