Net Patient Revenue (NPR)

What is net patient revenue (NPR)?

Net patient revenue (NPR) is the aggregate money generated from patient services collected from payors, including private insurance, Medicaid and Medicare. The calculation for NPR is the total patient revenues minus patient discounts. If a healthcare organization has a negative NPR, its discounts are greater than its total revenue.   

NPR does not factor in contractual adjustments, charitable donations, foundation earnings or bad debt.  

Why is net patient revenue (NPR) important to healthcare?

Net patient revenue is important because it indicates healthcare organizations’ financial strength. By knowing financial health, organizations can develop meaningful business strategies.