Report: Hospitals face increased challenges and financial pressures as they care for patients

The AHA March 11 released the latest edition of its annual Costs of Caring report, highlighting how hospitals and health systems continue to face increases in the costs of people, supplies, medicines and infrastructure needed to provide care and services to their communities. Among other key findings, the report found that total hospital expenses grew 7.5% in 2025, more than twice the growth rate of hospital prices. Roughly 60% of total hospital expenses went to paying doctors, nurses, specialists and other support staff who allow hospitals to provide around-the-clock care and services. The report also found that from 2019 to 2024, about 36% of hospital expense growth reflected treating more patients, and about 19% reflected caring for sicker, more complex patients. Additionally, hospitals in 2025 spent $43 billion trying to collect payments from insurers for care already delivered. The report found that nearly 56% of hospital costs are tied to service lines where reimbursement falls short of the cost of delivering care, including behavioral health, obstetrics, infectious disease, and burns and wounds.

“Rising costs for labor, supplies, drugs, and administrative burdens caused by corporate insurers, combined with caring for sicker patients, have created challenges for hospitals and health systems,” said AHA President and CEO Rick Pollack. “These strains are jeopardizing hospitals’ ability to provide around-the-clock care and services that patients and communities need.”