Dive Brief:

Hospitals’ finances have been largely strong this year, but their future performance is precarious and could be threatened by headwinds like heightened expenses , according to a report published Monday by consultancy Kaufman Hall.

Net operating revenue per calendar day increased 8% for the year to date through July in 2025 compared with last year. But total expense per calendar day increased 7% during the same period, according to Kaufman’s analysis.

Non-labor expenses are contributing to the increased strain on hospitals. Supply expense per calendar day rose 9% for the year to date compared with last year, while drug costs are up 10%.

Dive Insight:

Overall, median operating margin for the year so far increased 4% compared with the same period in 2024, and patient v

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