Operating a hospital is expensive. From employee salaries to facility renovation, there are a number of factors that drive high operating expenses. To remain financially stable, hospitals often rely on patient revenue to keep up with such high operating expenses. Net patient revenue is a key financial metric that can be used to identify hospitals that are financiallystrong.
What is net patient revenue forhospitals?
A hospital’s net patient revenue (NPR) is its aggregate money generated from patient services collected from payors. It is calculated by subtracting patient discounts from total patientrevenues.
Using the Definitive Healthcare HospitalView product, we have listed the top 50 hospitals in the U.S. by net patient revenue. The data comes from the Medicare Cost Report and is according to the most recent 12-month interval tracked in ourproduct.
What hospitals have the highest net patientrevenue?
The top U.S. hospital by net patient revenue is NewYork-Presbyterian Weill Cornell Medical Center. Located in the largest city in the U.S., this hospital likely sees more patients accounting for higher net patient revenue. In fact, NewYork-Presbyterian Weill Cornell Medical Center also tops the list of hospitals with the highest number of patient discharges (secondplace).
In second place is Tisch Hospital, also located in New York City. Like NewYork-Presbyterian Weill Cornell Medical Center, Tisch Hospital also likely sees more patients leading to a high NPR. This hospital also makes the list of top hospitals with the highest number of patient discharges (fifthplace).
The third top hospital by NPR is Cleveland Clinic Main Campus in Cleveland, Ohio. This hospital is a top U.S. hospital by number of staffed beds (fifth place) and is a top teaching hospitals by staffed beds, as well (second place). With such a high number of staffed beds compared to other U.S. hospitals, Cleveland Clinic Main Campus can accommodate a higher volume of patients, likely a top reason they rank high on this list of top hospitals by net patientrevenue.
What types of hospitals have the highest net patientrevenue?
Definitive Healthcare tracks nine different hospital types in the HospitalViewproduct:
- Children’shospitals
- Critical accesshospitals
- Department of Defense (DoD)hospitals
- Long-term acute carehospitals
- Psychiatrichospitals
- Rehabilitationhospitals
- Religious non-medical health careinstitutions
- Short-term acute carehospitals
- VAhospitals
Of the top 50 hospitals listed above, 47 of them are short-term acute care hospitals and three are children’shospitals.
Short-term acute care hospitals are the most prevalent hospital type in the U.S., accounting for more than half of all hospitals, a possible reason for it being the most common hospital type in the list of top hospitals byNPR.
What is the average net patient revenue ofhospitals?
In the United States, the average hospital net patient revenue is $210.4 million. The average NPR for the top 50 hospitals listed above is $3.2billion.
The combined net patient revenue of the top 50 hospitals accounts for 13% of all nationwide hospitalNPR.
What makes a hospitalprofitable?
Many factors play into the profitability of a hospital or health system. Some of the richest hospitals in the U.S. likely benefit from factors such as location, health system affiliations, process improvement, and multiple revenuestreams.
Hospitals in urban areas, specifically those that are part of a large health system, are more likely to have higher profit margins and excessrevenue.
Additionally, activities beyond patient care, such as investments, retail pharmacy sales, managed care premiums, and reimbursem*nt from quality programs can potentially increase total hospital revenue.
How many of the top hospitals by NPR are part of a healthsystem?
Of the factors that influence the profitability of a hospital, being part of a larger health system is very prevalent in this list of top 50 hospitals by NPR. Among the top hospitals listed above, 49 are part of a healthsystem.
While the majority of them do not belong to the top health systems by net patient revenue, having health system affiliation alone can increase the likelihood of having more affiliated facilities, potentially driving access to more patients and higher net patientrevenue.
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