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HOSPITALS: about 6% of revenue from nonpatient care

On average, 94 percent of total hospital revenue comes from providing patient care, according to this study based on private acute care hospitals in California.  The authors took a look at the sources for the other 6 percent of hospital revenue.  The study period was 2003 to 2007 (deliberately making the end year just prior to the beginning of the recession).  California was chosen because of the availability of a nice financial data set collected by the Office of Statewide Health Planning and Development (OSHPD). 

Source of NONOPERATING Revenues (California private hospitals 2003-2007)

  • 46.7% investment income
  • 22.8% medical office building revenue
  • 21.7% miscellaneous
  •   4.7% donations
  •   0.03% state and county appropriations

Source:  Singh, S.R., and Song, P.H.  Nonoperating revenue and hospital financial performance: do hospitals rely on income from nonpatient care activities to offset losses on patient care?  Health Care Management Review;38(3):201-210, July-Sept. 2013.  Full text can be purchased here: http://journals.lww.com/hcmrjournal/Abstract/2013/07000/Nonoperating_revenue_and_hospital_financial.3.aspx Posted by AHA Resource Center (312) 422-2050, rc@aha.org

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