The aim of the study is to identify waste to assess the potential recovery of hospitalized rice waste as an alternative raw material source of bioethanol. Values are calculated based on the alcoholic fermentation and distillation process, which was measured by using Alcohol Meters and Cost-Benefit Analysis (CBA) computation. The methodological steps used begin with a study idea, which includes a literature review, a waste flow system involving carbohydrate starch, and determining the distribution of characteristics of waste containing carbohydrate starch. The results were then followed up with an initial evaluation of the potential through interviews and questionnaires. After the initial evaluation, data have been collected, and further data processing will be carried out using a structured survey of rice waste at the sources of production. The management of existing rice waste will also be evaluated. Thus, data on the generation, characteristics, and composition of rice waste were obtained through sampling. Data analysis was performed using statistical tests and laboratory tests, as well as the calculation of Cost-Benefit Analysis. The average amount of rice waste hospitalized is 69.34 kg/day, and the average amount of ethanol produced through the fermentation and distillation process of hospitalized rice waste is 80%. Using IRR (Internal Rate of Return) and NPV (Net Present Value in CBA calculations at each of the profits/benefits. Rice waste has the potential to be recovered as an alternative source of raw material for bioethanol, yielding a value that exceeds its cost. IRR of rice waste from Hospital “X” is 21.54%.