Industry
Kaufman Hall: Hospital Bad Debt, Charity Care Growth Outpaces Revenue
Kaufman Hall's National Hospital Flash Report, drawing on data from more than 1,300 hospitals, finds bad debt and charity care per calendar day rose 49% in the first eight months of 2026 versus the same period in 2023. Year to date, bad debt and charity care per calendar day is up 15% from 2025, more than double the 6% growth in net operating revenue per calendar day over the same stretch. National median year-to-date operating margin fell to 2.5% in August from 3.8% in July. Hospital executives quoted in the report attribute the pressure to patients losing coverage, delaying care, and arriving in emergency departments as self-pay patients, with the Midwest and South showing the steepest regional increases.
Why it mattersState Medicaid agencies and health plans may see the coverage losses and self-pay growth described by hospital executives reflected in rising uncompensated care costs and shifting demand for Medicaid eligibility and enrollment support.