Hospitals are vital to any community, yet it is an industry in flux. With skyrocketing costs and changing regulations, hospitals are struggling to stay profitable. Unfortunately, many hospitals today are losing revenue without even realizing it. 

The following are five ways hospitals may unnecessarily lose money and what can be done about it.

1. Poor Billing Practices

Hospitals can often make costly mistakes when it comes to billing and collections. Poor billing practices can cost hospitals, from failing to code claims properly or not documenting services correctly to billing for unnecessary services or failing to follow up on unpaid bills. To ensure that they are getting paid what is owed, hospitals should have a strong system for accurate coding and follow-up with insurance companies and patients on unpaid bills.

Additionally, hospitals should work to streamline their billing processes to speed up payments. By using electronic healthcare records (EHRs) and other automation technologies, hospitals can make sure that they are billing correctly and getting paid faster.

2. Unnecessarily Long Length of Stays

Patients who stay in the hospital for an extended time can negatively impact revenue by putting a strain on resources. To combat this issue, hospitals should strive to reduce their average length of stay by improving patient flow and transitioning patients from the hospital as quickly as possible when appropriate.

Hospitals should also look into reducing readmission rates by providing better follow-up care for discharged patients. Hospitals should also use data analytics to identify risk factors associated with longer lengths of stay and find ways to mitigate those risks.

Hospitals can also use technology to identify bottlenecks and streamline their discharge processes. For example, they may use automated scheduling systems or even robotic process automation to ensure patients get the care they need on time.

3. Medical Denials

Medical denials can be a major source of lost revenue for hospitals. To reduce medical denials, hospitals should ensure that they are up to date on coding and documentation requirements. Hospitals can even use hospital denial management services as a way to manage medical denials. Hospitals should also review their policies and procedures regularly to make sure they comply with payer regulations.

Lastly, hospitals should also use data analytics to identify potential risk areas for medical denials and take steps to prevent them. By staying proactive in their efforts, hospitals can greatly reduce the number of medical denials they receive.

4. Unused Supplies and Equipment

Hospitals often have many unused supplies and equipment sitting around that they are paying for but not using. To reduce waste, hospitals should regularly assess the supplies they have on hand and ensure they are not overstocking items or buying more than is necessary.

Hospitals should look into selling any unused equipment or supplies through the appropriate online marketplaces to recoup some of the money spent on them. They may also want to consider donating excess items to charities or nonprofits to do some good with what would otherwise be wasted resources. Hospitals should also consider ways to reduce the amount of packaging they use when ordering supplies, as this can help save money.

5. Unused Space

Hospitals often have a lot of unused space that could be put to better use and generate revenue for the hospital. Hospitals should consider outsourcing services or renting their extra rooms and facilities to other healthcare providers or businesses to make the most out of their space.

They can also look into making their spaces more efficient and productive. For example, they may want to consider converting unused rooms into telehealth centers or utilizing technologies like 3D printing to make the most of their resources.

In addition, hospitals should look into ways to better use their outdoor spaces. For instance, they could open up green spaces for the public or offer outdoor dining or event spaces. All of these initiatives can help to bring in additional revenue.


Hospitals can maximize their resources and save money by looking into ways to reduce medication errors, unused supplies and equipment, and unused space. Additionally, they should strive to reduce their average length of stay by improving patient flow and transitioning patients from the hospital as quickly as possible when appropriate. 

By implementing these strategies, hospitals can ensure that they are getting the most out of their resources and reducing the revenue they are losing.