The most recent National Hospital Flash Report highlights stabilizing hospital margins at the end of 2025. Year-to-date margins closed out at a median of 1.3% when adjusted for the allocations to hospitals from corporate, physician and other entities. December also saw month-over-month and year-over-year increases in inpatient discharges, patient days and emergency department visits. With patient volumes moderately rising, hospitals will likely experience a greater demand for high-acuity care with elevated costs. This comes as expenses, particularly bad debt and charity care, rise across the board, suggesting hospitals will need to prepare for this new normal.
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