National Hospital Flash Report: August 2026 Data

The latest issue of the National Hospital Flash Report covers these and other key performance metrics.

Key Takeaways:

1. Converging pressures strain hospital performance. August was notably weaker for hospital performance than the prior four months, with year-to-date operating margins dipping to 2.5% when including allocations. Mounting financial challenges from increasing bad debt and charity care, payer mix erosion, and rising expenses may prompt hospitals to strengthen enterprise margin preservation efforts.
2. Non-labor expenses are a major pain point. Non-labor expense per adjusted discharge rose 6% year-to-date compared with 2025, and supply and drug expenses rose 5% and 6%, respectively, compounded by inflation in food and energy costs. Health systems could mitigate the cost pressures from persistent expense growth by sharpening supply chain optimization and expense management strategies.
3. Nearly half of hospitals are in the red. Roughly 43% of hospitals are currently operating at a loss, compared with roughly 33% before the COVID-19 pandemic. As hospitals seek greater long-term financial sustainability, continued financial pressures may accelerate strategic repositioning and portfolio optimization efforts through partnerships.

To view more insights on trends affecting hospitals and steps you can consider taking to address them, download the latest issue of the National Hospital Flash Report.