US Hospital Margins

Median hospital operating margin and the share of hospitals running at a loss.

Curated snapshot Last updated: Aug 14, 2026 4 data points

US hospital median operating margin

Kaufman Hall median operating margin, %, full year.

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Share of hospitals with a negative operating margin

% of US hospitals operating at a loss.

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Data table

US Hospital Margins — full data table
pct	year	series	source_ref	value_basis
4.9	2024	operating_margin	advisory-margins	Median operating margin 4.9% across full-year 2024
1.3	2025	operating_margin	kh-flash-dec2025	Kaufman Hall adjusted year-to-date operating margin closed 2025 at 1.3%
53	2022	in_the_red	kh-historical	53% of hospitals posted a negative operating margin in 2022
40	2023	in_the_red	kh-historical	40% of hospitals operated in the red in 2023

Methodology & sources

Last updated: Aug 14, 2026

Methodology

Operating margin is the Kaufman Hall National Hospital Flash Report median, which excludes non-operating income (investment returns) and therefore differs from bottom-line net margin. Where a figure is "adjusted year-to-date" that is stated in the value_basis. The median and the share-in-the-red are different measures and can move independently: a strong quarter at large systems lifts the median without pulling the loss-making tail above zero. CAVEAT: 2020–2023 full-year medians are not published in the cited releases (2021 is available only as a single March monthly reading, and a monthly value is not comparable to an annual one), so the margin chart carries only 2024 and 2025. Re-verified 2026-08-10.

Sources

Kaufman Hall — National Hospital Flash Report, December 2025 ↗ Public report
Kaufman Hall — A historical view of hospital operating margins ↗ Public report
Advisory Board — Charted: the current state of hospital finances ↗ Public report

Comparisons are informative, not definitive. See each source for definitions and limits.