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.
Read the full article: Patient Care Generates Less Than Half of Gross Revenue for Most Hospitals //
Source: https://www.trillianthealth.com/market-research/studies/patient-care-generates-less-than-half-of-total-revenue-for-most-hospitals
