• Kaufman Hall reported US hospitals’ adjusted year-to-date operating margin improved to 1.7% through March 2026 from 1.3% in February, signaling modest stabilization but performance still lagging 2025.
• Discharges rose month over month while patient days fell, pointing to shorter lengths of stay and a continued shift toward outpatient care.
• The firm flagged ongoing pressure from payor mix erosion, rising bad debt and charity care, and higher drug expenses versus 2025.
• A separate physician enterprise analysis showed productivity gains, with work RVUs per full-time employee up 3% year over year in Q1 2026.
• Labor remained the dominant cost driver in physician enterprises, accounting for 84.6% of total expense, with provider expense at 71%.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Kaufman Hall and Associates Inc. published the original content used to generate this news brief on May 18, 2026, and is solely responsible for the information contained therein.