Hospital financial performance is challenged in early 2026 as rising bad debt and continued increases in expenses create ongoing pressure. Navigating this uncertain economic climate requires hospitals to be strategic about where to allocate resources.
The recent issue of the National Hospital Flash Report covers these and other key performance metrics.
Key Takeaways
- Patient volume in January declined across inpatient and outpatient services. This decline could be due to postponing of elective procedures around the holidays, as well as a change in payer mix.
- Bad debt continues to increase. Carrying over from 2025, bad debt and charity care continue to go up.
- Expenses continue to put pressure on hospitals. In addition to the persistent increases in drugs and supplies, there was a big increase in labor expenses in January.
Erik Swanson is a Managing Director leading Kaufman Hall’s Data and Analytics Group where he focuses on providing cutting-edge data science tools to our clients to provide deeper and more timely insight, drive operational improvement, develop thought leadership, and produce the most meaningful outcomes.
Submit
More from this Report Series
