Kaufman Hall flagged rising uncompensated care, payer mix erosion, and expense inflation as key drags on hospital financial performance through June 2026.
Bad debt and charity care rose year-to-date, tightening cash pressure; smaller and rural hospitals faced the greatest strain.
Median adjusted year-to-date operating margin remained below 2025 levels, despite broadly stable headline results across the sector.
Emergency department visits increased in June versus a year earlier, raising risk of further volume shifts tied to payer changes.
Supply and drug expenses climbed well above inflation year-to-date, extending cost pressure into the second half.
XLV•
