Share of hospitals with a negative operating margin
% of US hospitals operating at a loss.
About this data
More than half of US hospitals (53%) ran a negative operating margin in 2022. That fell to 40% in 2023 as volumes and payer mix improved. The median margin and the share-in-the-red move together but not identically — a small number of large systems can lift the median while the tail stays under water.
Share of hospitals with a negative operating margin
% of US hospitals operating at a loss.
Data table
| pct | year | series | source_ref | value_basis |
|---|---|---|---|---|
| 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, 2026Methodology
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
Comparisons are informative, not definitive. See each source for definitions and limits.