Hospital costs climb as emergency rooms see sicker patients

Modern Healthcare – Wednesday, August 20, 2025
By Alex Kacik and Tim Broderick

Hospital costs are growing as an increasing number of sicker patients visit the emergency department, according to a new report.

The average cost of an inpatient stay rose 4.8% from mid-2023 to early 2025, according to the latest national data from Sg2, a data analytics company owned by group purchasing organization Vizient. At academic medical centers, per-case cost growth nearly doubled the rate of expense inflation at community hospitals between the first quarters of 2022 and 2025.

Most people arriving at emergency departments require immediate attention, which may help explain why treatment costs are increasing. Hospitals are having a tough time keeping up with demand for care as the population ages, leading to overcrowded ERs and full inpatient units.

Providers are expected to get even busier over the next 10 years, potentially creating more care backlogs, according to the report.

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