Abstract Patient satisfaction is the benchmark for the level of health service quality. The patient satisfaction regarding the perceived treatment at the hospital determines whether he will use the same hospital in the future. Muji Rahayu Surabaya Hospital experienced a reduction in inpatient visits by 1.01% in 2018. The decrease in inpatient visits is likely due to patient complaints. The purpose of the study was to analyze patient satisfaction towards the perceived health care quality and the effect on patient loyalty. This study used a cross-sectional approach. The sampling technique was done by using proportionate stratified random sampling with 116 respondents who received inpatient services at Muji Rahayu Surabaya Hospital. The statistical test used was descriptive analysis and regression. The detailed discussion showed that 14.4% of patients felt very satisfied regarding the physical environment quality. There are 20.7% of the patients felt very satisfied regarding the interaction quality of doctors. Moreover, 21.3% of the patients are satisfied regarding the interaction quality provided by nurses, and 16.8% of patients felt very satisfied with the outcome quality. Meanwhile, overall patient loyalty was still low, which was as much as 13.2%. Regression analysis showed that patient satisfaction has a significant positive effect on patient loyalty (p=0.000). Patient satisfaction towards perceived health care quality has a strong effect on patient loyalty.