Report: Time to Act: What The Future Holds for Pennsylvania's Hospitals, Patients, and Communities

This report examines the financial challenges facing Pennsylvania’s hospitals and the need to secure their future to ensure Pennsylvanians’ continued access to high-quality care. Prepared by Oliver Wyman, LLC on behalf of The Hospital and Healthsystem Association of Pennsylvania.

Executive Summary

Pennsylvania’s hospitals are central to their communities as care providers, clinical educators, innovators, and major employers. However, their financial stability is under significant strain from low reimbursements and rising operating costs. Today, Commercial and Medicaid reimbursements in the commonwealth are below the national median, a tort-friendly medical liability environment persists, and extensive and costly regulations make operating a hospital in Pennsylvania more challenging than in other states. Going forward, these challenging financial conditions are projected to worsen as Medicaid reimbursements are reduced, insurance coverage declines, and costs continue to increase. Without intervention, multiple hospitals could be forced to reduce services or close, leaving vulnerable communities without local healthcare options. Immediate action is required to secure the future of Pennsylvania’s hospitals and preserve access to high‑quality care.

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Topics: Access to Care, Federal Advocacy, Medicaid, Medical Liability, Public Health, State Advocacy

Revision Date: 1/20/2026

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