41.2% of US rural hospitals operate in the red, and the median rural hospital's operating margin is 2.0%, Chartis reported in its 2026 study of rural hospitals.
41.2%
of US rural hospitals operate in the red
41.2% of US rural hospitals operate in the red, and the median rural hospital's operating margin is 2.0%, Chartis reported in its 2026 study of rural hospitals.
Chartis reports an improvement from 46% in 2025, mostly from rural hospitals in Medicaid expansion states.
Source: 2026 Rural Health State of the State (opens in a new tab), How many rural hospitals are operating in the red?. Verified October 2026.
Related charts
- From the blog
A boarded med-surg stroke patient cost nearly twice as much a day as one on a ward
Canellas et al., Annals of Emergency Medicine, vol. 84 (2024) - From the blog
At the median TEAM hospital, the hospital stay uses 38% to 70% of the target, by surgery
Kent Applied, TEAM position report and method; CMS, TEAM PY1 preliminary target prices; CMS, Medicare Inpatient Hospitals by Provider and Service, 2024; CMS, TEAM episode construction specifications; CMS, payment standardization method; CMS, TEAM model page - From the blog
A TEAM hospital in Track 3 can owe CMS up to 20% of its total target price in a year
CMS, TEAM Model Overview slides (updated September 2026); 42 CFR 512.550, TEAM reconciliation (eCFR) - From the blog
Payers initially denied nearly 12% of hospital and physician claims in 2024
Kodiak Solutions, press release on 2024 initial denial rates (May 21, 2025)
Sources for the figures above: Canellas MM et al., Measurement of Cost of Boarding in the Emergency Department Using Time-Driven Activity-Based Costing, Annals of Emergency Medicine 84(4) (opens in a new tab); 42 CFR 512.550, Reconciliation process and determination of the reconciliation payment or repayment amount (opens in a new tab); Rate of initial denials of medical insurance claims continued to rise in 2024, Kodiak Solutions proprietary data show (opens in a new tab).
Related facts
3,567
of 5,121 US community hospitals belong to a health system of any size
3,567 of the 5,121 US community hospitals belonged to a health system of any size in the 2024 AHA Annual Survey, and 1,797 were rural, AHA's 2026 Fast Facts reports. The two counts overlap, because some rural hospitals also belong to a system.
Source: Fast Facts on U.S. Hospitals, 2026.
KentApplied92.3%
of US practice firms with employees have fewer than 20
Of 440,667 US physician, dentist, other health practitioner and outpatient mental health firms with employees in 2022, 92.3% had fewer than 20 employees, by Kent Applied's sum of Census Bureau figures.
Source: Statistics of US Businesses 2022, US and state totals by 6-digit NAICS.
KentApplied40
prior authorizations a week, on average, per physician
Physicians complete an average of 40 prior authorizations a week, which take 13 hours of physician and staff time, the AMA's 2025 survey of 1,000 physicians found.
Source: AMA survey: Prior authorization reform pledge falls short with physicians.
KentApplied
Sources for the figures above: Fast Facts on U.S. Hospitals, 2026 (opens in a new tab); AMA survey: Prior authorization reform pledge falls short with physicians (opens in a new tab).
Book a 20-minute call
If a number like this one matters to your organization, talk it through with Tyler Kent.
Prefer to skip the call? Get a written proposal
Or email tyler@kentapplied.com.