MedCity News December 30, 2025
Hospitals faced significant financial pressures in 2025, driven largely by rising labor costs, revenue cycle challenges and increasing supply expenses, according to new data from Kaufman Hall. Health systems are responding with staffing optimization, outsourcing non-core services and tighter cost controls.
Workforce pressures remained the dominant financial challenge for hospitals and health systems in 2025, according to data released this month by Kaufman Hall.
Labor is still the largest expense for hospitals, with about 70% of organizations pursuing widespread efforts focused on staffing optimization.
“The interesting trend within the workforce setting is that more than half [of hospitals] are looking at the potential outsourcing of non-core activities. This has always been a trend in healthcare, but it seems to be...







