July 10, 2025- Length of stay (LOS) has long been an important metric for hospitals and health systems, with significant implications for their financial performance. New data from a Kaufman Hall 2024 report shows that optimizing length of stay is one of the top characteristics of financially high-performing hospitals. The report describes improving length of stay as an operational priority that can yield many benefits for the time and resources invested.
The Kaufman Hall analysis also found that if a hospital were able to achieve a one-day reduction in length of stay, the reduction of excess days could realize three distinct financial benefits: A 425-bed hospital could save over $20 million in operating expenses, opening up space for additional admissions. At $4,500 per admission, this could equate to around $20 million in additional margin.
View the Kaufman Hall 2024 report.
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