Healthcare is already a profitable industry and attracts investors to invest. The growth of this hospital creates increasingly fierce competition and customers have increasingly selective choices, and this is a challenge that will affect the sustainability of the organization. Challenges like this confront health service providers, especially hospitals, both government and private, with two choices, namely entering the competition arena by making changes and improvements or leaving the competition arena without being burdened with changes and improvements. Therefore, an appropriate alternative competitive strategy is needed so that the hospital is able to compete with other competitors. Such business environment conditions require hospitals to improve service quality and quality in order to remain successful, both at the operational, managerial and strategic levels. The design of this research is explanatory research or explanatory research which aims to determine the effect of service quality on the level of customer satisfaction and loyalty. Survey research in question is explanatory in nature and causal relations and hypothesis testing. This survey research method focuses on disclosing causal relationships between variables, which is a research aimed at investigating causal relationships based on observations of the effects that occur, with the aim of separating the direct and indirect effects of a causal variable on the effect variable. Research Results Responsiveness and physical evidence do not have a direct effect on satisfaction. This shows that the first hypothesis which states that responsiveness has no effect on satisfaction is rejected. Theoretically, these findings contain an important role for the creation of customer satisfaction. The higher (better) employee responsiveness, the higher customer satisfaction. Reliability, Assurance, Empathy have a direct effect on customer satisfaction. This shows the fourth hypothesis which states that empathy has an effect on customer satisfaction is accepted. Theoretically, these findings contain an important role for the creation of customer satisfaction. The higher (good) employee empathy, the higher customer satisfaction. Responsiveness, Empathy, and Physical Evidence have a direct effect on customer loyalty. This shows that the sixth hypothesis which states responsiveness has an effect on customer loyalty is accepted. Theoretically, these findings contain an important role for creating customer loyalty. The higher (better) employee responsiveness, the higher customer loyalty. Assurance and Reliability have no direct effect on customer loyalty through customer satisfaction. Customer satisfaction has a direct effect on customer loyalty indicating that the eleventh hypothesis which states that customer satisfaction has an effect on customer loyalty is accepted. Theoretically, these findings contain an important role for creating customer loyalty. The higher the customer satisfaction, the higher the customer loyalty.
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