Where Hospitals Get Their Money: Understanding The Biggest Sources Of Hospital Revenue
Patient Care Is The Biggest Revenue Source: The largest source of revenue for most hospitals is patient care. Hospitals earn most of their money by providing medical services, including surgeries, emergency treatment, diagnostic tests, hospital stays, and outpatient care. These services generate payments from private health insurance companies, Medicare, Medicaid, and patients who pay out of pocket. Although hospitals receive money from several sources, patient care accounts for the overwhelming majority of their operating revenue. The amount they collect depends on the number of patients they treat, the services they provide, and the insurance coverage those patients carry.