Kaufman Hall: Hospital Finances Stabilized in Q1 2025

Financial and operational performance for U.S. hospitals in the first four months of 2025 improved over the same period in 2024, according to the most recent National Hospital Flash Report from the Chicago-based consulting and advisory firm Kaufman Hall, a Vizient company. Kaufman Hall leaders released the report on June 5.

“Hospital performance from January to April outpaced the first four months of 2024, largely driven by patient volume and hospital efficiency. Operating room minutes, ED visits, and inpatient revenue are trending upward, demonstrating a strong demand for services,” said Erik Swanson, managing director and group leader in the Data Analytics division at Kaufman Hall. “A decline in average length of stay indicates that hospitals are triaging, treating, and discharging patients efficiently and appropriately.”

The average hospital operating margin in April was 3.3 percent; that compares favorably with the average hospital operating margin in March: 2.9 percent. Meanwhile, February had seen 2.7 percent, January had seen 3.7 percent, and January had seen 1.9 percent.

The report listed three key takeaways, as follows:

1. Hospital financial performance improved between January and April. On a year-to-date basis, hospital performance in the first four months of 2025 compared favorably to the same time period in 2024.

2. Average length of stay decreased and adjusted discharges per calendar day increased compared to the prior year period. This reflects improved patient throughput and a higher demand for hospital services.

3. Measures of patient volume showed improvement. Inpatient revenue, discharges, ED visits and operating room minutes all increased compared to the prior year period.

The full report is available here.