The financial performance of non-profit hospitals weakened in 2025, according to Moody’s, the financial rating service company.

According to Moody’s:

• Median operating margins fell from 1.3 percent in 2024 to 1.2 percent in 2025.
• Median operating income fell 13.3 percent.
• Revenue growth fell from 9.6 percent to 8.9 percent.
• Expenses continued to grow, driven by increased wages and rising costs for purchased services and prescription drugs.

On the other hand, Moody’s also found that:

• Revenue growth outpaced rising expenses.
• Patient and pharmacy activity grew.
• Hospitals in some states benefited from expanded Medicaid supplemental payments.
• Commercial reimbursement improved.

For a closer look at how non-profit hospitals fared in 2025, see the Becker’s Hospital Review article “Nonprofit hospital profitability softened in 2025: 10 notes from Moody’s.”