MedCity News March 23, 2025
Hospitals started 2025 with a stable financial performance driven by strong patient volumes, but rising costs for drugs, supplies, and services continue to put major pressure on margins.
Kaufman Hall recently released its first report analyzing hospitals’ financial data from 2025, and the advisory firm found that hospitals kicked off this year with a stable performance.
The report examined more than 1,300 hospitals’ financial data from January. Hospitals’ monthly median operating margin was 4.4% in January, up from 3.7% the month before — and much higher than the 2.1% recorded for 2024 as a whole.
High patient volumes — both inpatient and outpatient — show no signs of slowing down, according to Erik Swanson, managing director at Kaufman Hall. This...
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