The Strata Performance Trends report combines financial, operational, and claims data from hospitals, health systems, and other healthcare organizations across the country. Key findings from our Q2 2025 report include:
Key findings from our Q2 2025 report include:
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Hospital drug expenses continue to rise nationwide, with hospitals that treat the sickest patients facing the steepest increases — a trend that could worsen under proposed pharmaceutical tariffs.
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Drug expenses surged across service lines, with a 65.4% spike for the cancer service line among the biggest year-over-year increases in inpatient drug expense per case.
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Days Cash on Hand (DCOH) remained steady at a median of 128 in June 2025 for health systems nationally, but looming Medicaid cuts threaten this liquidity stability.
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Expected Medicaid cuts could fuel shifts in patient behavior as more individuals lose coverage and delay or forgo care, placing greater financial strain on hospitals as illustrated by margin gaps in outpatient versus emergency care for similar services.
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Health system operating margins held steady for a sixth consecutive month, with the median year-to-date operating margin of 1.2% in June, while hospital operating margins saw positive gains.