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Charity care drove more than 84% of the increase in uncompensated care
MADISON, Wis. — The Wisconsin Hospital Association Information Center (WHAIC) released today its annual Guide to Wisconsin Hospitals and Uncompensated Health Care Report for FY2025. These reports show the cost of delivering hospital care continued to increase in FY2025, driven by rising operating expenses and growth in uncompensated care. Hospital expenses increased 9.3% overall, including a 12.2% increase in supply and services costs, while uncompensated care increased 15.4%. Half of Wisconsin hospitals reported lower operating margins than the prior year and more than one in four had an operating loss.
Key Findings:
- Hospital expenses increased by 9.3% in FY2025 with supply and service costs increasing at a faster rate of 12.2% from the prior year and 18.1% since FY2023.
- More than 2 million patient visits involved uncompensated care in FY2025, a 21.3% increase from FY2024.
- Charity care accounts for 84.4% of overall uncompensated care at cost increases in FY2025.
- Total uncompensated care at cost increased by 15.4% in FY2025 and 42.7% over the last two years. Over the last two years, there was a 60.4% increase in charity care and a 28.5% increase in bad debt.
- In FY2025, 86 hospitals—half of Wisconsin’s hospitals—reported lower operating margins than in the prior year, while 45 hospitals—more than one in four Wisconsin hospitals—reported an operating loss.
- Wisconsin hospitals reported a statewide operating margin of 7.3% in FY2025, compared to 7.5% in FY2024 and 6.1% in FY2023.
- Wisconsin health system operating margins increased to 3.9% in FY2025, compared to 2.2% in 2024 and -0.8% in 2023.
A total of 172 Wisconsin hospitals submitted hospital survey data for FY2025.
Read the Guide to Wisconsin Hospitals for FY2025.
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Since 2003, the WHA Information Center has been dedicated to collecting, analyzing and disseminating complete, accurate and timely data and reports about charges, utilization, quality and efficiency provided by Wisconsin hospitals, ambulatory surgery centers and other health care providers.
