This graphic dives into the most interesting findings in 2024’s year-end National Hospital Flash Report. From a revenue perspective, hospitals’ investments in outpatient care are reaping dividends, and 2024 as an operating year was largely better than 2023. In 2024,outpatient revenues grew 9% year-over-year and 31% compared with 2021. However, bad debt and charity care grew 14% year-over-year and 20% since 2021. While a myriad of factors could have led to such a significant increase, Medicaid redeterminations and persistent prior authorization denials were likely at play. Hospitals’ median expenses also illustrated the simultaneous hope and hurdles that many are facing. Hospitals’ median expenses were 6% higher year-over-year and 17% higher than in 2021, a reflection of stubborn inflation across the economy. However, when looking at these expenses on a volumes-adjusted basis, these expense increases did not outpace inflation. As we enter new and uncertain times, providers should remain focused on investments that prioritize strategic growth and continued profitability.
