Key Facts About Hospitals
(Authors: Zachary Levinson, Scott Hulver, Jamie Godwin, and Tricia Neuman for The Kaiser Family Foundation published February 19, 2025)
Hospitals account for nearly one third (31%) of total health care spending—$1.5 trillion in 2023—with expenditures projected to rise rapidly through 2032, contributing to higher costs for families, employers, Medicare, Medicaid, and other public payers. In the past, policymakers have looked to reduce spending on hospital care as part of broader efforts to make health care more affordable and reduce the federal deficit and national debt. For example, Republican lawmakers recently floated a number of proposals that could directly or indirectly affect the more than 6,000 hospitals across the country, including major reductions in Medicaid spending, reductions in Medicare spending for uncompensated care and bad debt, establishing site-neutral payments that would achieve Medicare savings by aligning payment rates for a given service across different sites of care, and eliminating federal tax-exempt status for nonprofit hospitals. Continue reading here…
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