New AHA Report Highlights Rising Hospital Costs, Financial Pressures
The American Hospital Association’s latest Costs of Caring report shows hospitals and health systems are facing increasing financial pressures as expenses outpace growth in hospital prices. Total hospital costs rose 7.5% in 2025, with roughly 60% going to staff salaries and another 36% tied to treating more patients and caring for sicker, more complex cases.
Hospitals also spent $43 billion collecting payments from insurers, and nearly 56% of costs were for services reimbursed below the cost of care, including behavioral health, obstetrics and infectious disease.
AHA president and CEO Rick Pollack said rising labor, supply and drug costs, combined with administrative burdens, are straining hospitals’ ability to provide 24/7 care to communities.
Read the full report here.
