43% of Hospitals Are Operating in the Red, Report Finds

Nearly half of US hospitals are losing money. According to Kaufman Hall's National Hospital Flash Report, released Oct. 13, 43% of hospitals operated at a loss in August as margins slipped and financial pressures intensified.

The report draws on August financial performance data from 1,300 hospitals, supplied by Strata Decision Technology, spanning all regions of the country. The core problem is familiar: costs keep climbing faster than revenue. Rising expenses, from labor to supplies to pharmaceuticals, continue to squeeze operating margins even for systems that have recovered volume.

For hospital operators, the data underscores that the post-pandemic recovery remains fragile and uneven. A growing share of hospitals operating in the red means tighter capital budgets, harder decisions on service lines and staffing, and more scrutiny on technology spending that promises efficiency. For vendors and investors, it signals continued pressure on buyers to prove near-term return on investment rather than long-horizon bets.