National Hospital Flash Report

National Hospital Flash Report: January 2026 Data

KauffmanReport
By Erik Swanson
6 min readMar 19, 2026
Financial sustainabilityData and analyticsStrategy partnerships and innovation

Business consultant reviewing data

Hospital financial performance is challenged in early 2026 as rising bad debt and continued increases in expenses create ongoing pressure. Navigating this uncertain economic climate requires hospitals to be strategic about where to allocate resources.

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

Key Takeaways

  1. Patient volume in January declined across inpatient and outpatient services. This decline could be due to postponing of elective procedures around the holidays, as well as a change in payer mix.
  2. Bad debt continues to increase. Carrying over from 2025, bad debt and charity care continue to go up.
  3. Expenses continue to put pressure on hospitals. In addition to the persistent increases in drugs and supplies, there was a big increase in labor expenses in January.

Author

Erik Swanson

Erik Swanson

Managing Director

Erik Swanson is a Managing Director leading Kaufman Hall’s Data and Analytics Group. His responsibilities focus on building cutting-edge data science tools and leveraging big data to provide deeper and more timely insight, drive operational improvement, and develop thought leadership to help our clients and consultants achieve the most meaningful outcomes. His areas of expertise span artificial intelligence and machine...