Hospital performance stable, but tenuous

CHICAGO – September 8th, 2025 – Hospital financial and operational performance is generally stable but could be threatened by growth in the cost of expenses outpacing growth in revenues, according to the most recent National Hospital Flash Report from Kaufman Hall, a Vizient company.

“While performance has generally been strong this year, profitability has decreased slightly over the past few months. Bad debt and charity care also continue to rise. In addition, operating margins for health systems are about one percent lower than hospital margins. This points to potential challenges for hospitals and health systems to weather future uncertainty.”

Erik Swanson, Managing Director and Group Leader, Data and Analytics, Kaufman Hall

The National Hospital Flash Report draws on data from more than 1,300 hospitals from Strata Decision Technology, LLC.


About Kaufman Hall, a Vizient Company 

Kaufman Hall, a Vizient company, provides management consulting solutions to help society’s foundational institutions realize sustained success amid changing market conditions. Since 1985, Kaufman Hall has been a trusted advisor to boards and executive management teams, helping them incorporate proven methods, rigorous analytics, and industry-leading solutions into their strategic planning and financial management processes, with a focus on achieving their most challenging goals.

Kaufman Hall services use a rigorous, disciplined, and structured approach that is based on the principles of corporate finance. The breadth and integration of Kaufman Hall advisory services are unparalleled, encompassing strategy; financial and capital planning; performance improvement; treasury and capital markets management; mergers, acquisitions, partnerships, and joint ventures; and real estate.


CONTACT: Toby Howard, THoward@MessagePartnersPR.com, (571) 201-7409