The AHA released its latest Cost of Caring report demonstrating that hospitals and health systems are facing “increases in the costs of people, supplies, medicines, and infrastructure needed to provide care and services to their communities.”
The top expense remains workforce spending; about “60% of total expenses went to paying…doctors, nurses, specialists, and other professionals.” Costs rose 5.6% from the previous year. Total hospital expenses rose 7.5% in 2025, and expenses for supplies rose 9.9% and drugs 13.6%.
From 2019 to 2024, “about 36% of hospital expense growth reflected treating more patients, and about 19% reflected caring for sicker, more complex patients.” The rest was from “higher input costs, such as labor, drugs, and supplies.” Hospitals in 2025 spent “$43 billion trying to collect payments from insurers for care already delivered.” Around 56% of hospital costs are “tied to service lines where reimbursement falls short of (or is less than) the cost of delivering care.”
