Patient Care Generates Less Than Half of Gross Revenue for Most Hospitals

Hospital financial performance is generally discussed in terms of operating margin, which measures whether hospitals generate profits or losses from patient care. However, most hospitals generate additional revenue from non-clinical sources such as investment income, philanthropy, grants, etc. With the benefit of these non-operating revenue sources, many nonprofit health systems with negative operating margins are able to achieve positive overall margins. To gain a comprehensive understanding of hospital financial performance and sustainability, it is important to understand both patient and non-patient related revenues and expenses.

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Source: https://www.trillianthealth.com/market-research/studies/patient-care-generates-less-than-half-of-total-revenue-for-most-hospitals

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