Hospitals begin 2026 challenged by expenses and bad debt

Hospitals’ financial performance in 2026 was off to a slow start in January, with rising expenses, increases in bad debt, and lower patient volume contributing to lower revenues, according to the most recent National Hospital Flash Report from Kaufman Hall, a Vizient company.

“Increased expenses, especially in labor, and the persistent increase in bad debt and charity care are not likely to ease this year. Overall structural costs are poised to go up. Hospitals will need to be strategic about where to allocate resources and how to manage spending in what could be a challenging economic environment.”

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

Kaufman Hall’s 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.

FOR IMMEDIATE RELEASE: Thu., March 19, 2026

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