Hospital performance settled into a “new normal” in 2025. Patient volumes continue to grow, and a persistent gap
between gross and net operating revenue indicates an eroding payer mix and more uninsured patients.
The recent issue of the National Hospital Flash
Report covers these and other key performance metrics.
Key Takeaways
- Hospital performance settled into a “new normal” in 2025. While margins in 2025 were
stronger compared to prior years, hospitals need to be strategic about diversifying
services and managing
expenses.
- Patient volumes continue to grow across all services. While outpatient
volumes continue to increase, hospitals will likely have a greater proportion of high
acuity patients with elevated costs of care.
- There is a persistent gap between gross and net operating revenue, alongside a rise in bad debt
and charity care. This imbalance indicates an eroding payer mix, likely a higher
proportion of government vs. private payers, and more uninsured patients.
