Hospital Margins Split as Weak Systems Cut, Strong Ones Expand
In a roundup piece, Becker's Hospital Review compiles recent data showing a widening gap between struggling and thriving hospitals heading into 2027. A Kaufman Hall report found 43% of hospitals operated in the red in August 2026, up from 33% pre-pandemic, with average margins falling to 1.8% as drug, supply, labor costs and bad debt outpace revenue growth. Meanwhile for-profit chains like HCA and nonprofits like Duke Health and Trinity Health posted strong margin gains, and systems such as Ascension and Tower Health completed multi-year financial turnarounds. Weaker facilities, including Watsonville Community Hospital with just eight days of cash on hand, face closure risk, rating downgrades, and in at least one case federal scrutiny over Medicare compliance.