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Hospital Performance Showed Continued Stability in 2024
Hospitals’ financial and operational performance showed continued stability in 2024, with increased outpatient revenue compared to 2023 and fewer patient observation days, the number of days patients spend under hospital monitoring without formal admission, according to Kaufman Hall’s National Hospital Flash Report. While expenses continued to rise throughout 2024, they did not outpace inflation on a volume-adjusted basis.
Medigy Insights
Despite this stability, increasing bad debt and uncompensated care—driven by fewer people enrolled in public insurance and more coverage denials—along with tight labor markets and reimbursement challenges, highlight that many hospitals still operate on slim margins and need sustainable payment reforms.
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High Labor Costs Hitting Hospitals as Physicians Generate Less Revenue
Hospital and health systems’ finances have remained stable in the last 12 months, but high labor costs continue to challenge the bottom line, according to the latest Kaufman Hall National Hospital …
