Explore Kaufman Hall’s January 2026 National Hospital Flash Report for the latest data on hospital margins, volumes, revenue, and expenses across more than 1,300 U.S. hospitals.

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Compensation is not keeping pace with physician productivity, while patient demand continues to rise and the proportion of advanced practice providers expands across the workforce.

Hospital performance settled into a “new normal” in 2025. Patient volumes continue to grow, and a persistent gap between gross and net operating revenue indicates an eroding payer mix and more uninsured patients.

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Despite a decline in hospital performance and volume this month, year-to-date revenue, volume, and margins are still strong compared to prior years.

From managing non-labor expenses to strengthening the workforce, expanding access and navigating payer reimbursement, health systems shared the key challenges shaping their focus this year—and their planning for the year ahead.

Hospital volumes remained strong in October, while average length of stay declined, translating to a dip in net revenue per discharge. Bad debt and charity care continue to rise, and staffing levels are tightening.

The latest Kaufman Hall Report includes highlights from the annual Healthcare Leadership Conference.

Hospital operating margins remain stable, but data shows a widespread gap in performance. Patient volumes increased this month in both emergency and inpatient care, while drug expenses continue to rise.

The median investment/subsidy per provider plateaued this quarter, however the distribution between higher and lower performing practices is wide.

Following a modest uptick in hospital and health system M&A activity in Q2 2025, with eight announced transactions, Q3 continued to trend upwards, with 15 transactions announced—an activity level more in line with historical observations.