News: U.S. hospitals see positive financial developments in 2025, challenges remain, report says
Profit margins in April have increased due to a greater demand for patient care, according to Kaufman Hall’s National Hospital Flash Report.
The report, HealthLeaders reported, details current operating margin improvements among 1,300 hospitals in the United States. When compared with the previous year and this past March, U.S. hospitals saw a marginal improvement of +6% and +0.1%, respectively.
“Hospital performance from January to April outpaced the first four months of 2024, largely driven by patient volume and hospital efficiency,” Erik Swanson, managing director and group leader of data and analytics at Kaufman Hall, told HealthLeaders. "Operating room minutes, ED [emergency department] visits, and inpatient revenue are trending upward, demonstrating a strong demand for services. A decline in average length of stay indicates that hospitals are triaging, treating, and discharging patients efficiently and appropriately.”
The patient volumes rose 3% over this past year with discharges per day climbing to 5%. One of the most notable improvements, according to HealthLeaders, was a decline in the length of stay, which declined by 3% when compared with last year’s figures.
Other notable figures included:
- Net operating revenue per calendar day: +6%
- Outpatient revenue per calendar day: +10%
- Inpatient revenue per calendar day: +5%
Nevertheless, U.S. hospitals continue to face challenges with respect to the cost of supplies (+9%), drugs (+7%), purchased services (+8%), and labor costs (+6%).
Editor’s note: To read the Kaufman Hall report, click here. To read the HealthLeaders coverage, click here.