The forces shaping healthcare finances in 2026 — Insights from Q1
Health system operating margins fell to 0.2% in April, edging back toward zero after a brief two-month recovery. A new report shows just how fragile hospital finances remain heading into the second half of 2026.
Drawing on data from more than 2,200 hospitals and 149,000 providers, the report maps the pressures reshaping margins right now: telehealth that expands access while losing money on every payer, energy costs climbing sharply in the Northeast and advanced practice provider productivity outpacing physicians without consistent revenue to match.
It also tracks where leaders are investing. Nearly 1 in 5 health systems now has a C-suite or VP-level executive dedicated to AI, data or machine learning, up from 6.6% in 2019.
The report benchmarks all of it against national and regional trends, so finance and operations teams can see exactly where their organization stands.
Inside the report:
Drawing on data from more than 2,200 hospitals and 149,000 providers, the report maps the pressures reshaping margins right now: telehealth that expands access while losing money on every payer, energy costs climbing sharply in the Northeast and advanced practice provider productivity outpacing physicians without consistent revenue to match.
It also tracks where leaders are investing. Nearly 1 in 5 health systems now has a C-suite or VP-level executive dedicated to AI, data or machine learning, up from 6.6% in 2019.
The report benchmarks all of it against national and regional trends, so finance and operations teams can see exactly where their organization stands.
Inside the report:
- Telehealth total cost margins by payer, including -146.9% for Medicare
- Northeast utility expenses up as much as 33.2% year over year
- April 2026 hospital KPIs for margin, expense, volume and revenue
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