Pennsylvania operates one of the largest and most complex hospital systems in the United States, with over 180 licensed hospitals, more than 100 health systems, and a hospital industry generating nearly $70 billion in annual revenue. The sector spans major academic medical centers, community hospitals, rural critical access facilities, and ambulatory surgery centers, serving a population of approximately 13 million residents across 67 counties.
This report compiles statistical data on Pennsylvania’s hospitals from multiple authoritative sources, covering the period from 2019 through projected 2026 figures. It tracks hospital supply, financial performance, patient utilization, clinical outcomes, workforce conditions, rural access challenges, Medicaid risk exposure, and price transparency compliance — providing a data-driven picture of the state’s hospital sector as it navigates post-pandemic recovery, consolidation pressures, and evolving public policy.
The data reveals a sector in transition: financially improving in aggregate but deeply uneven in recovery, with rural hospitals, safety-net facilities, and Medicaid-dependent institutions continuing to operate under severe strain. Access gaps — particularly in maternal care, behavioral health, and emergency services — remain acute across rural Pennsylvania, even as major urban and suburban systems report strengthening margins.
Hospital Count, Types, and Infrastructure
Number of Hospitals by Ownership Type (2020–2024)
Non-profit hospitals consistently make up the large majority of Pennsylvania’s hospital base. The table tracks ownership composition from 2020 through 2024, showing a gradual overall decline driven by reductions in for-profit and, since 2022, non-profit facilities.
| Year | State/Local Gov. | Non-Profit | For-Profit | Total |
|---|---|---|---|---|
| 2024 | 2 | 143 | 36 | 181 |
| 2023 | 2 | 145 | 36 | 183 |
| 2022 | 2 | 146 | 37 | 185 |
| 2021 | 2 | 144 | 39 | 185 |
| 2020 | 1 | 145 | 40 | 186 |
Non-profits accounted for ~79% of all Pennsylvania hospitals across all five years. For-profit hospitals fell from 40 (2020) to 36 (2024).
Hospital Capacity and Population Ratios (2019)
In 2019, Pennsylvania had 371 hospital establishments serving a population of nearly 12.8 million. The figures below describe the state’s hospital density and staffing intensity at that time.
- Hospital establishments (Q3 2019): 371
- Population (July 1, 2019): 12,801,989
- People per hospital: 34,507
- Hospital employees (September 2019): 290,922
- People per hospital employee: 44
Pennsylvania’s ratio of 34,507 people per hospital exceeded the national average of 23,540, indicating lower hospital density. In staffing, the state performed better — 44 residents per hospital employee versus the national average of 50.
Hospital Industry Size and Growth (Projected 2026)
Industry projections through 2026 show continued growth in market size, business count, and employment, with employment expanding faster than the number of facilities — a sign of ongoing consolidation.
| Metric | 2026 Projected Value | Avg. Annual Growth (2021–2026) |
|---|---|---|
| Market size | $69.9 billion | +1.3% |
| Number of hospital businesses | 253 | +0.7% |
| Number of employees | 297,240 | +2.0% |
Hospital Types — Southeastern Pennsylvania Region
The Southeastern Pennsylvania region, with 72 hospitals, is the state’s most concentrated. Its facility type breakdown illustrates the diversity of care settings found across Pennsylvania.
| Hospital Type | Count in SE Penn Region |
|---|---|
| General Acute Care | 42 |
| Psychiatric | 12 |
| Rehabilitation | 6 |
| Other Specialty | 4 |
| Alcoholism / Drug Abuse | 3 |
| Long-Term Acute Care | 3 |
| Eye | 1 |
| Surgical Center | 1 |
| Total | 72 |
Hospital Characteristics — Southeastern Pennsylvania Region
Beyond facility type, SE Penn hospitals are notable for their concentration of teaching, trauma, and specialty capabilities. The list below summarizes key characteristics of all 72 hospitals in the region.
- Total hospitals in region: 72
- Non-profit hospitals: 51
- State Tobacco Fund recipients: 32
- Teaching hospitals: 30
- NICU units: 21
- OB/GYN units: 20
- 340B Program participants: 16
- Trauma centers: 14
- Burn hospitals: 4
- Total staffed beds: 12,011
- Total employees in region: 80,740
- Federal research funding: $1.15 billion
The SE Penn region alone accounts for 30 teaching hospitals, 14 trauma centers, and over $1 billion in federal research funding — making it the state’s primary academic medicine hub.
Rural Hospital Access
Pennsylvania has 235 active hospitals across all 67 counties, but significant access gaps persist. The figures below describe the rural hospital landscape and current federal investment aimed at addressing it.
- Active hospitals statewide: 235
- Critical Access Hospitals: 17
- Rural-designated hospitals: 34
- Total licensed beds (rural hospitals): 45,263
- Counties with no hospital access: 9 (13% of all counties)
- Birthing hospitals in PA Perinatal Quality Collaborative network: 67 (85.93% of live births)
- CMS Rural Health Transformation Program — annual federal funding to PA: $193.3 million
- Total federal rural health funding FY2026–2030: $966.5 million
Nine county-level hospital deserts persist despite federal investment of nearly $1 billion earmarked for rural health infrastructure over five years.
Hospital Systems and Consolidation
Community Health and Hospital Systems by Metro Area
Pennsylvania has 104 community health and hospital systems combined employing 205,388 people, earning over $48 billion in annual revenue, and holding $57 billion in assets. The table breaks down the sector by major metropolitan area.
| Metro Area | Nonprofit Systems | Employees | Annual Revenue | Assets |
|---|---|---|---|---|
| Pittsburgh | 35 | 126,359 | $33.7 billion | $30.2 billion |
| Philadelphia | 29 | 24,209 | $3.9 billion | $5.9 billion |
| Harrisburg | 6 | 14,720 | $2.9 billion | $3.6 billion |
| Bloomsburg | 2 | 12,035 | $2.7 billion | $6.9 billion |
| Lancaster | 3 | 9,344 | $1.5 billion | $2.7 billion |
| Reading | 1 | 7,180 | $1.4 billion | $1.0 billion |
| York | 4 | 5,941 | $887 million | $774 million |
| Allentown | 3 | — | $276 million | $1.6 billion |
| State College | 3 | 617 | $131 million | $54 million |
| Scranton | 2 | 10 | $222 million | $70 million |
| Altoona | 2 | 24 | $58 million | $30 million |
| Erie | 2 | 24 | $1.7 million | $2.1 million |
| Chambersburg | 2 | — | $31,277 | — |
| Gettysburg | 1 | — | $0 | — |
System Size Distribution
Most Pennsylvania hospital systems are small. The lists below show how 104 systems are distributed by employee count and annual revenue, revealing a highly skewed distribution where a handful of large systems dominate the sector.
By Employment
- 0 employees (consolidated reporting): 28 systems
- 1–10 employees: 8 systems
- 11–25 employees: 6 systems
- 26–100 employees: 2 systems
- 101–1,000 employees: 13 systems
- Over 1,000 employees: 23 systems
By Annual Revenue
- Under $250,000: 18 systems
- $250,000 – $1 million: 7 systems
- $1 million – $5 million: 5 systems
- $5 million – $25 million: 11 systems
- $25 million – $100 million: 12 systems
- Over $100 million: 30 systems
Systems earning over $100 million annually account for 98.2% of all nonprofit hospital revenue in Pennsylvania; those earning under $1 million account for essentially 0%.
Mergers, Acquisitions, and Closures
Over 90% of all full or partial hospital closures in Pennsylvania in the past 20 years were preceded by a merger, acquisition, or change of ownership. The pace is accelerating, and the window between acquisition and closure is shrinking.
| Period | Full/Partial Closures | Preceded by M&A | Avg. Years: M&A to Closure |
|---|---|---|---|
| Past 20 years (2003–2023) | 33 | 30 (91%) | 7.6 years |
| Past 5 years (2018–2023) | 15 | 14 (93%) | 4.1 years |
Additional Pennsylvania consolidation metrics since 2004:
- Hospital mergers and acquisitions: 148
- Complete hospital closures: 32
- Hospitals that shut down key services only: 25
- Share of M&As leading to full or partial closure: 1 in 3
- Remaining independent general acute care hospitals (2025): 13
- Of those 13, currently slated for acquisition: 2
- Hospital closures of major services in 2024: 7
- New system buyouts in 2024 (hospitals affected): 4 buyouts / 28 hospitals
Closed Hospitals by Location and Timing — Selected Cases (2003–2023)
The table illustrates the geographic spread of closures and the shortening gap between acquisition and closure across both urban and rural settings.
| Hospital | City | County | Setting | Year of M&A | Year of Closure | Years Between |
|---|---|---|---|---|---|---|
| Hahnemann University Hospital | Philadelphia | Philadelphia | Urban | 2018 | 2019 | 1 |
| UPMC Pinnacle Lancaster Hospital | Lancaster | Lancaster | Urban | 2017 | 2019 | 2 |
| Elwood City Medical Center | Ellwood City | Lawrence | Rural | 2017 | 2019 | 2 |
| Mercy Philadelphia | Philadelphia | Philadelphia | Urban | 2018 | 2020 | 2 |
| UPMC Susquehanna Sunbury | Sunbury | Northumberland | Rural | 2017 | 2020 | 3 |
| Jennersville Hospital – Tower Health | West Grove | Chester | Urban | 2017 | 2021 | 4 |
| Brandywine Hospital – Tower Health | Coatesville | Chester | Urban | 2017 | 2022 | 5 |
| First Hospital – Commonwealth Health | Kingston | Luzerne | Urban | 2017 | 2022 | 5 |
| Delaware County Memorial Hospital – Crozer Health | Drexel Hill | Delaware | Urban | 2016 | 2022 | 6 |
| Berwick Hospital Center | Berwick | Columbia | Rural | 2020 | 2022 | 2 |
| UPMC Lock Haven | Lock Haven | Clinton | Rural | 2017 | 2023 | 6 |
| Suburban General Hospital | Bellevue | Allegheny | Urban | 2004 | 2010 | 6 |
| Montgomery Hospital | Norristown | Montgomery | Urban | 2005 | 2012 | 7 |
| Northeastern Hospital | Philadelphia | Philadelphia | Urban | 1995 | 2009 | 14 |

The average time from acquisition to closure has nearly halved — from 7.6 years (20-year average) to 4.1 years (5-year average). With only 13 independent general acute care hospitals remaining, consolidation is reshaping the sector rapidly.
Financial Performance
General Acute Care Hospitals (FY2023 vs. FY2024)
PHC4’s Financial Analysis shows broad improvement in FY2024 statewide metrics, though recovery remained uneven. The table compares key financial indicators year over year, followed by the distribution of margins across hospitals.
| Financial Metric | FY2023 | FY2024 | Change |
|---|---|---|---|
| Net patient revenue | — | $61.0 billion | +9.2% |
| Total operating revenue | — | $66.6 billion | — |
| Operating expenses | — | $62.1 billion | — |
| Operating income | $1.4 billion | $4.5 billion | +$3.1 billion |
| Average operating margin | 2.26% | 6.80% | +4.54 pts |
| Total margin | 3.44% | 8.34% | +4.90 pts |
| Uncompensated care (bad debt + charity) | $774 million | $927 million | +19.8% |
| Uncompensated care as % of net patient revenue | 1.38% | 1.52% | +0.14 pts |
| Hospitals with multi-year operating losses | — | 39% | — |
Distribution of Hospital Margins (FY2024)
While the statewide average improved, a large minority of hospitals remained loss-making or below the sustainability threshold.
Negative (loss)
- Operating Margin: 37%
- Total Margin: 32%
0%–4% (below sustainability threshold)
- Operating Margin: 14%
- Total Margin: 10%
Above 4% (healthy)
- Operating Margin: 49%
- Total Margin: 58%
44% of hospitals with multi-year losses saw their margins worsen further in FY2024. Financial recovery was concentrated among larger, better-resourced institutions.
Rural Hospitals (FY2023 vs. FY2024)
Rural hospital finances improved substantially in FY2024, driven in part by increased Medicaid state-directed payments. The table compares year-over-year changes followed by the margin distribution.
| Financial Metric | FY2023 | FY2024 | Change |
|---|---|---|---|
| Net patient revenue | — | $10.7 billion | +10.1% |
| Total operating revenue | — | $11.2 billion | — |
| Operating expenses | — | $10.4 billion | — |
| Operating income | $254 million | $851 million | Tripled |
| Average operating margin | 2.49% | 7.59% | +5.10 pts |
| Total margin | 3.96% | 9.79% | +5.83 pts |
| Uncompensated care | $147 million | $176 million | +19.4% |
| Uncompensated care as % of net patient revenue | 1.52% | 1.65% | +0.13 pts |

Distribution of Rural Hospital Margins (FY2024)
| Margin Category | Operating Margin | Total Margin |
|---|---|---|
| Negative (loss) | 35% | 30% |
| 0%–4% | 17% | 13% |
| Above 4% | 48% | 57% |
Rural finances improved more sharply than the statewide average, yet more than a third remain loss-making, and uncompensated care (1.65%) exceeds the statewide acute care average (1.52%).
Ambulatory Surgery Centers (FY2023 vs. FY2024)
There were 287 licensed ASCs in Pennsylvania in FY2024, down from 292. Despite falling patient visit volumes, revenue and margins rose sharply, reflecting a shift toward higher-value procedures and lower overhead costs.
| Metric | FY2023 | FY2024 | Change |
|---|---|---|---|
| Licensed ASCs in Pennsylvania | 292 | 287 | −5 |
| ASCs opened during period | — | 6 | — |
| ASCs closed during period | — | 11 | — |
| Net patient revenue | $1.90 billion | $2.11 billion | +11.1% |
| Average revenue per outpatient visit | — | $1,602 | — |
| Total outpatient visits | 1.39 million | 1.32 million | −4.8% |
| Major outpatient surgical procedures | — | 1.0+ million | — |
| ASC share of all major outpatient surgeries in PA | — | 35% | — |
| Hospital outpatient department share | — | 65% | — |
| Average operating margin | 24.31% | 29.52% | +5.21 pts |
| Average total margin | 23.63% | 29.35% | +5.72 pts |
ASC operating margins (29.52%) are more than four times higher than general acute care hospital margins (6.80%), reflecting lower overhead and a more commercially favorable payer mix.
Economic Impact — Southeastern Pennsylvania Hospital Sector (FY2020)
The hospital sector generates substantial economic activity beyond direct patient care. The table captures the direct and ripple effects of SE Penn hospitals on the regional economy, followed by their payer mix.
Total economic output:
- Total: $40.7 billion
- Direct: $19.2 billion
- Ripple: $21.5 billion
Employment supported:
- Total: 175,341
- Direct: 80,740
- Ripple: 94,601
Total salaries:
- Total: $12.0 billion
- Direct: $6.5 billion
- Ripple: $5.5 billion
SE Penn Payor Mix (FY2020 Net Patient Revenue)
The payor mix below shows SE Penn hospitals’ revenue distribution by payer type — significantly more commercially weighted than rural Pennsylvania, where government payers can reach 70% of revenue.
| Payor | Share of Net Patient Revenue |
|---|---|
| Commercial | 43% |
| Medicare | 32% |
| Medicaid | 21% |
| Other | 4% |
Rural Hospital Economic Contribution (2022)
Rural hospitals are often the single largest employer in their county, generating economic effects far beyond their direct healthcare role. The figures below describe their broader economic contribution.
- Total economic output: $14 billion ($8B direct, $6B ripple)
- Jobs supported: 69,500+ (39,700 direct, 29,800 ripple)
- Total salaries paid: $4.4 billion ($2.9B direct, $1.5B ripple)
- Charity care provided: $47+ million
- Community health improvement spending: $24+ million
- Rural counties where a hospital is a top 10 local employer: 83%
Patient Care and Utilization
Inpatient Utilization by Age Group — Statewide (Q2 2025)
PHC4 tracks inpatient admissions by age group for all Pennsylvania county residents. Patients aged 75 and older form the single largest age cohort, accounting for more than one in four admissions statewide.
| Age Group | Total Cases | % of Statewide |
|---|---|---|
| Under 18 | 46,492 | 12.1% |
| 18–44 | 78,331 | 20.4% |
| 45–64 | 80,713 | 21.0% |
| 65–74 | 72,985 | 19.0% |
| 75 and Older | 105,592 | 27.5% |
| Statewide Total | 384,161 | 100% |
Inpatient Utilization by Age Group — All Counties (Q2 2025)
County-level data reveals significant demographic variation in hospital patient populations. The side-by-side table below shows total inpatient cases and the share of the two most demographically significant age groups — under 18 and 75 and older — for all 67 counties, listed alphabetically.
| County | Cases | <18% | 75+% |
| Statewide | 384,161 | 12.1 | 27.5 |
| Philadelphia | 51,396 | 14.0 | 16.8 |
| Allegheny | 33,921 | 12.9 | 25.7 |
| Montgomery | 24,620 | 12.7 | 30.6 |
| Bucks | 17,087 | 10.4 | 32.2 |
| Delaware | 15,977 | 13.4 | 24.7 |
| Berks | 14,868 | 12.1 | 29.5 |
| Lancaster | 13,882 | 14.0 | 29.6 |
| York | 13,343 | 12.3 | 28.4 |
| Westmoreland | 12,254 | 9.0 | 33.2 |
| Chester | 11,901 | 14.7 | 29.9 |
| Lehigh | 11,870 | 12.8 | 28.0 |
| Northampton | 11,646 | 10.0 | 31.5 |
| Luzerne | 10,729 | 11.1 | 29.2 |
| Forest | 225 | 10.7 | 38.2 |
| Bedford | 1,406 | 10.5 | 37.3 |

Philadelphia has the lowest 75+ share (16.8%) and the highest 18–44 share (28.2%), reflecting its younger urban population. Forest (38.2%) and Bedford (37.3%) counties have the highest 75+ shares, consistent with older rural demographics.
Major Outpatient Procedures (Calendar Year 2024)
PHC4 tracked 10 commonly performed outpatient procedures. ASCs accounted for 35% of all major outpatient surgical procedures performed in Pennsylvania in 2024, with procedure type determining the split between settings.
| Procedure | Total | ASCs | Hospital Outpatient Depts. |
|---|---|---|---|
| Endoscopy – Lower GI Diagnostic | 590,176 | 349,245 (59%) | 240,931 (41%) |
| Endoscopy – Upper GI Diagnostic | 295,528 | 139,758 (47%) | 155,770 (53%) |
| Cataract Procedures | 220,531 | 180,176 (82%) | 40,355 (18%) |
| Carpal Tunnel Release | 37,460 | 21,741 (58%) | 15,719 (42%) |
| Urinary Tract Stone Removal | 29,503 | 4,926 (17%) | 24,577 (83%) |
| Hernia Repair – Groin | 23,411 | 1,981 (8%) | 21,430 (92%) |
| Tonsil and Adenoid Removal | 23,193 | 10,303 (44%) | 12,890 (56%) |
| Gallbladder Removal – Laparoscopic | 23,011 | 266 (1%) | 22,745 (99%) |
| Hernia Repair – Abdomen | 18,397 | 1,366 (7%) | 17,031 (93%) |
| Ear Tube Insertion | 21,864 | 12,440 (57%) | 9,424 (43%) |
ASCs dominate cataract surgery (82%) and carpal tunnel release (58%). Hospital outpatient departments retain near-total control of complex abdominal procedures: gallbladder removal (99%) and hernia repairs (92–93%).
Preventable Hospital Stays per 100,000 Population (Ages 65+, 2022)
Preventable hospitalization rates among residents aged 65+ indicate the effectiveness of primary and ambulatory care. Pennsylvania’s statewide rate of 2,953 per 100,000 exceeds the national average of 2,666. All 67 counties are shown side-by-side, ranked from highest to lowest.
County — Rate per 100k
- Greene — 5,135
- Philadelphia — 4,070
- Fayette — 3,624
- Berks — 3,496
- Lehigh — 3,176
- Allegheny — 3,041
- Dauphin — 3,014
- Pennsylvania — 2,953
- Bucks — 2,940
- Erie — 2,885
- Luzerne — 2,854
- Montgomery — 2,824
- Delaware — 2,781
- Chester — 2,580
- York — 2,528
- Lancaster — 2,018
- Union — 1,941
Greene County’s rate (5,135) is 2.6× the national average and 2.7× the lowest county, Union (1,941). The 3,194-point spread signals deep inequities in primary care access across the state.
Clinical Outcomes
PHC4’s Hospital Performance Report compares statewide mortality and 30-day readmission rates for 17 conditions between FFY2018 and FFY2023, based on discharges from October 1, 2022 through September 30, 2023.
In-Hospital Mortality Rates: Statistically Significant Changes (FFY2018 vs. FFY2023)
Eight of 16 reported conditions showed a statistically significant increase in in-hospital mortality over the five-year period. No condition showed a statistically significant decrease.
| Condition | 2018 | 2023 | Change |
|---|---|---|---|
| Sepsis | 8.7% | 10.3% | +1.6 pts |
| Heart Attack – Medical Management | 6.8% | 7.6% | +0.8 pts |
| Blood Clot in Lung | 2.6% | 3.3% | +0.7 pts |
| Kidney Failure – Acute | 2.2% | 2.6% | +0.4 pts |
| Pneumonia – Infectious | 2.2% | 2.6% | +0.4 pts |
| Heart Failure | 2.4% | 2.7% | +0.3 pts |
| Diabetes – Medical Management | 0.5% | 0.8% | +0.3 pts |
| Abnormal Heartbeat | 0.8% | 0.9% | +0.1 pts |
Sepsis saw the largest deterioration (+1.6 pts). The consistent worsening across all eight conditions with no offsetting improvements is linked to staffing shortages and workforce burnout documented in Section 6.
30-Day Readmission Rates: Statistically Significant Changes (FFY2018 vs. FFY2023)
In contrast to mortality, readmission rates improved for most conditions. Seven conditions showed statistically significant decreases; one increased. This suggests progress in discharge planning and post-acute coordination.
| Condition | 2018 | 2023 | Direction |
|---|---|---|---|
| Respiratory Failure | 23.5% | 21.3% | Decrease |
| Heart Failure | 23.2% | 21.7% | Decrease |
| Pneumonia – Aspiration | 22.3% | 20.3% | Decrease |
| Diabetes – Medical Management | 20.4% | 18.9% | Decrease |
| Chest Pain | 13.8% | 11.3% | Decrease (largest) |
| Intestinal Obstruction | 13.4% | 12.2% | Decrease |
| Abnormal Heartbeat | 13.3% | 11.2% | Decrease |
| Blood Clot in Lung | 11.7% | 13.0% | Increase |
Blood Clot in Lung is the only condition with a significant readmission increase, pointing to ongoing challenges in post-discharge thromboembolic management.
Workforce
Staff Vacancy and Turnover Rates (HAP Survey, December 2022)
A HAP survey of member hospitals in December 2022 found vacancy and turnover rates running two to three times historical averages across all major clinical roles.
- Medical Assistants: ~42% vacancy rate
- Respiratory Therapists: ~32% vacancy / ~12% turnover
- Registered Nurses (RNs): ~31% vacancy / 15% turnover
- Medical Technologists / Lab Technicians: ~24% vacancy / ~16% turnover
Staffing shortages were identified by hospital leaders as the single greatest threat to financial stability and patient access in 2022.
Labor Cost Escalation
The pandemic triggered dramatic labor cost increases that persist to the present. The following figures document the scale of wage and agency cost increases across Pennsylvania hospitals.
| Labor Cost Metric | Value |
|---|---|
| Contract RN hourly rate — pre-pandemic | ~$70/hour |
| Contract RN hourly rate — 2021–2022 peak | ~$180/hour |
| Contract labor share of nursing costs — pre-pandemic | Under 15% |
| Increase in contract labor share of nursing costs | +10–20 percentage points |
| Increase in agency costs for nursing support staff (2019–2021) | +444% |
| Year-over-year hourly wage increase above pre-pandemic baseline | 10–20% |
| Annual bonus pay at larger PA health systems | Over $50 million |
| Hospital employee avg. weekly earnings increase since Feb. 2020 | +21.1% |
| COVID-related labor expenses (first half of 2022) | $293.8 million |
| Total pandemic expense increases + revenue losses (through H1 2022) | ~$7.9 billion |
Contract RN rates more than doubled to $180/hour at peak, and agency costs for nursing support staff rose 444% in just two years. Hospital wage increases (+21.1%) substantially outpaced the broader private sector.
Administrative Workforce Growth (1991–2020)
A study using Pennsylvania Department of Health and AHA data tracked administrator growth relative to all other staff categories over three decades, finding administrators growing far faster than clinical staff.
| Metric | Change 1991–2020 |
|---|---|
| Average number of administrators per hospital | +102% (raw); +60% adjusted for patient volume |
| Ratio of administrators to registered nurses | +24% |
| Ratio of administrators to all nurses | +33% |
| Ratio of administrators to all hospital staff | +70% |
Hospital administrators more than doubled over 30 years. The 70% rise in the administrator-to-all-staff ratio is a significant contributor to the operating cost pressures documented in Section 3.
Rural Hospital Challenges
Maternal Health and Birthing Services
The loss of labor and delivery services from rural hospitals has reached a critical scale in Pennsylvania. The figures below describe the current state of rural obstetric access.
- Rural PA hospitals that no longer offer labor and delivery: 60%
- Women in rural counties more than 30 min from a birthing hospital: 47%+
- Women statewide without a birthing hospital within 30 min: More than 12%
- Rural hospitals still offering L&D that report financial losses on it: Most remaining
- Rural hospitals nationally that stopped obstetric services (2023): 217 (up from 198)
- Rural hospitals nationally that stopped chemotherapy (2023): 353 (up from 311)
Three in five rural Pennsylvania hospitals have eliminated labor and delivery services. For many rural women, the nearest birthing hospital is more than an hour away — a life-threatening gap when obstetric complications arise.
Key Systemic Challenges Identified by Rural Hospital Leaders (2023)
HAP convened rural hospital executives in late 2023. Five interconnected challenge areas emerged as the most pressing threats to rural hospital viability.
- Workforce: Recruitment and retention of physicians, APPs, and RNs; high agency staffing costs; competition from non-healthcare employers; lack of affordable childcare for staff.
- Post-Acute and Behavioral Health Access: Shortage of long-term care, skilled nursing, and home health beds; inadequate behavioral health capacity; ED patient boarding; 96-hour length-of-stay rule complications.
- Reimbursement: Rates below cost of care; Medicare/Medicaid up to 70% of patient mix; 340B program under threat; value-based payment barriers for low-volume facilities.
- Regulatory Burden: Antiquated regulations not updated post-COVID; inconsistent state agency interpretation across regions; lack of transparency in regulatory decisions.
- Emergency Medical Services: Fragmented, volunteer-dependent EMS system; ambulance crew shortages; transportation gaps for post-acute patient transfers.
These five challenge areas are mutually reinforcing: staffing shortages extend inpatient stays; longer stays worsen financial pressure; financial pressure limits retention investment, which deepens shortages further.
Medicaid Dependency and Financial Risk
Hospitals at Risk from Proposed Federal Medicaid Cuts
A 2025 PHAN report identified 47 Pennsylvania hospitals — 1 in 4 — at moderate to significant financial risk from proposed federal Medicaid funding changes. The figures below describe the scale and composition of that risk.
- Hospitals at moderate-to-significant risk: 47 (25% of PA hospitals)
- Of those, located in rural communities: 17
- Hospitals meeting 5 or more risk criteria: 11
- Hospitals meeting 3–4 risk criteria: 28
- Estimated Pennsylvanians who could lose Medicaid coverage: ~600,000
- Estimated resulting annual increase in uncompensated care: $706 million
- Full or partial closures/service reductions in PA (past 25 years): 78 total (26 in rural counties)

Risk Assessment Criteria
PHAN assessed each hospital against eight criteria across two categories — patient population characteristics and financial vulnerability indicators.
Patient Population Criteria
- High Medicaid enrollment in the hospital’s county
- High proportion of uninsured, Medicaid, or Medicare patients
- High proportion of low-income patients eligible for charity care
Financial Vulnerability Criteria
- High reliance on supplemental public funds to offset losses
- Medicaid is the largest or second-largest payer
- Medicaid constitutes more than 20% of total payer mix
- Medicaid has a large quantified impact on financial performance
- Days cash on hand below 100
An estimated $706 million annual increase in uncompensated care would compound already-rising FY2024 trends. Proposed cuts would fall hardest on rural and low-income communities where Medicaid is a core hospital revenue line.
Price Transparency and Financial Assistance Compliance
Federal rules since 2021 require all hospitals to publish a machine-readable standard charge list and a patient-friendly list of shoppable service prices. State law additionally requires public posting of financial assistance policies. PHAN monitors compliance annually across all 184 general acute care and critical access hospitals in Pennsylvania.
Full Price Transparency Compliance Rate
Compliance with federal price transparency rules has stagnated since peaking at 46% in 2023, despite rules having been in effect for over four years.
| Year | Share of Hospitals Fully Compliant |
|---|---|
| 2023 | 46% |
| 2024 | 41% |
| 2025 | 41% |
Combined Policy Compliance (2023 Assessment, 172 hospitals)
PHAN assessed compliance with both federal price transparency rules and state financial assistance requirements simultaneously. Only a small fraction of hospitals met both standards.
| Compliance Status | % of Hospitals | Count |
|---|---|---|
| Price Transparency only | 42% | 71 |
| Neither policy | 31% | 54 |
| Financial Assistance only | 22% | 38 |
| Both policies | 5% | 9 |
Missing Transparency Components (Number of Hospitals, of 184 assessed)
The table tracks the number of hospitals missing each required transparency component across all three years. The trend on negotiated rates — the most critical data for insured patients — is worsening each year.
| Missing Component | 2023 | 2024 | 2025 |
|---|---|---|---|
| Lacking Negotiated Rates for specific plans | 73 | 81 | 99 |
| Lacking All Payers and Plans | 90 | 31 | 25 |
| Lacking Negotiated Minimum | 51 | 50 | 46 |
| Lacking Negotiated Maximum | 49 | 50 | 46 |
| Lacking Discounted Cash Price | 49 | 48 | 41 |
| Lacking Gross Charge | 48 | 41 | 34 |
| Lacking Codes | 48 | 21 | 22 |
| Lacking Readable File | 39 | 19 | 21 |
| Lacking Description of Service | — | 27 | 22 |
| Lacking Shoppable List or Price Estimator Tool | 12 | 20 | 15 |
Data File Completeness (2025)
PHAN assessed the approximate completeness of each hospital’s published price data file. Approximately one third of hospitals provide essentially complete data, while another third provide less than half of what is required or no file at all.
- Over 90% complete: 36% of hospitals
- 70–90% complete: 18% of hospitals
- 50–70% complete: 16% of hospitals
- Under 50% complete: 19% of hospitals
- No file available: 11% of hospitals
Only 5% of Pennsylvania hospitals comply with both price transparency and financial assistance laws. The share failing to provide negotiated rates for specific plans grew from 73 hospitals in 2023 to 99 in 2025 — worsening each year despite rules being in effect since 2021.
Conclusion
Pennsylvania’s hospital finances improved in 2024: the average operating margin for general acute care hospitals increased from 2.26% to 6.80%, and rural hospital operating income tripled. However, nearly 40% of hospitals still operated at a loss, and 44% of hospitals with multi-year losses saw their financial situation worsen. Uncompensated care rose by almost 20%, partly due to the end of pandemic-era Medicaid protections.
The sector continues to face structural challenges, including increasing consolidation, reduced rural access, closures of obstetric services, workforce shortages two to three times historical norms, and rapidly growing administrative costs. Forty-seven hospitals (about 25% statewide) face moderate to significant financial risk from potential Medicaid cuts, which could leave up to 600,000 people uninsured and add $706 million annually in uncompensated care costs.
Price transparency remains very limited: only 5% of hospitals comply with federal and state requirements, and the number failing to publish basic negotiated insurance rates increased from 73 to 99 hospitals between 2023 and 2025. Overall, the data show a system that remains financially fragile, geographically unequal, and insufficiently transparent, highlighting the need for reforms in reimbursement policy, rural access, workforce development, and regulation.
Sources:
- Pennsylvania hospitals number by ownership 2023| Statista
- Hospitals by Ownership Type | KFF State Health Facts
- Number of hospitals and hospital employment in each state in 2019
- Newsweek: 26 PA Hospitals Ranked Among Best In World – St. Clair Health
- Pennsylvania: 235 Hospitals, 9 Deserts | RHT Compass
- Hospital Performance Report 2023
- Report: Pennsylvania Rural Hospital Landscape – Resource Center
- Hospital systems in Pennsylvania | Cause IQ
- Pennsylvania Hospitals – Overview
- State Region:SE Penn
- Financial Analysis 2024
- Financial Analysis 2024 | PHC4
- Financial Analysis 2024: Rural Hospitals
- Outpatient Procedures Report January 1, 2024
- Pennsylvania Rural Hospital Landscape
- Hospitals in Pennsylvania – Market Research Report (2015-2030) | IBISWorld
- Report: Analysis of the Current Challenges on Pennsylvania Hospitals – Resource Center
- Analysis of the Current Challenges on Pennsylvania Hospitals
- Data Highlights Strain on Pennsylvania Hospitals – HAP
- Top 25 Pennsylvania Hospitals by Net Patient Revenue
- Inpatient Utilization by Age Pennsylvania County Residents, 2025
- Pennsylvania Utilization – Table
- Hospital Price Transparency 2025
- 47 Pennsylvania Hospitals Rely on Medicaid to Stay Open
- Promises Made; Promises Broken: What Really Happens when Local Hospitals are Acquired – Pennsylvania Health Access Network
- Report: Are Pennsylvania Hospitals Complying with Rules Aimed at Ensuring Patients Know What They’ll Pay for Healthcare?
- Hospital Closures are on the Rise in Pennsylvania; Harrisburg Must Step In
- Growth in Pennsylvania Hospital Administrators 1991-2020 – PubMed
- Differences Between Participant and Non-participant Hospitals in the Pennsylvania Rural Health Model – PMC
