U.S. Hospitals and Health Systems Hit with Long-running Increases in Medical Supply and Drug Expenses, Bad Debt and Charity Care, According to New Strata Report

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Analysis Highlights Enduring Challenges as Industry Anticipates Impacts of Federal Policy ChangesCHICAGO, May 08, 2025 (GLOBE NEWSWIRE) -- Hospitals and health systems nationwide saw notable growth in medical supply and drug expenses and increases in bad debt and charity care in recent years — all factors that could be exacerbated in the coming months as the healthcare industry feels the effects of federal tariffs and other policy changes, according to a new report from Strata Decision Technology.

"Now — with more than two-thirds of medical devices used in the U.S.manufactured outside of the country — tariffs and other federal policy changes could further drive up costs for pharmaceuticals, syringes, personal protective equipment, and other medical supplies and devices that healthcare professionals rely on every day to care for patients.” U.S.health systems also saw growth in charity and bad debt deductions in recent years. The median charity deduction for health systems increased 5.4% from Q1 2024 to Q1 2025, and jumped 21.4% in Q1 2025 versus Q1 2023.

Drug expense as a percent of total expense rose from 4.1% in Q1 2023 to 4.4% in Q1 2025.  "Hospitals and health systems have battled persistent expense increases for years,” said Steve Wasson, Strata’s chief data and intelligence officer.

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Author / Journalist: Strata Decision Technology, L.L.C.

Category: Technology

Markets: China

Topics: Medical 2025 Expense Charity Health Years Hospitals Data Decision Debt Strata

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-05-08 @ 18:18:00 (17 hours ago)

News Timezone: GMT +8:00

News Source URL: globenewswire.com

Language: English

Article Length: 626 words

Reading Time: 4 minutes read

Sentences: 23 lines

Sentence Length: 28 words per sentence (average)

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Copyright Owner: © GlobeNewswire

News ID: 28497379

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