Latest on U.S. Hospital Finances

January 10, 2025

Hospitals continued to navigate challenging financial conditions as they approached the end of 2024, according to the latest Kaufman Hall National Hospital Flash Report.

Declining volumes and rising expenses were notable challenges during November.

Here’s what you need to know:

• Margins:  Kaufman Hall's Monthly Operating Margin Index declined from 5.8 percent to 3.3 percent during November. The Operating Margin Index for the calendar year remained largely unchanged from October to November.
• Expenses:  Year-to-date, total expenses per calendar day were up 6 percent. Labor expenses were up 5 percent in that time.
• Volume metrics:  Month-over-month, emergency department visits (-2%), and adjusted patient days per calendar day (-3%) declined. 
• Next steps:  Predictive analytics and modeling may be a part of financial planning and forecasting looking forward, the health care analyst noted.
• Quotable:  “The data indicate that hospitals and health systems may have better opportunities to plan their expenses,” said Erik Swanson, senior vice president and data and analytics group leader with Kaufman Hall. “Using predictive analytics and modeling could help organizations optimize their financial planning processes.”

The report is available online.