This paper presents an empirical investigation to measure different dimensions of hospital service quality (HSQ) by gap analysis and patient satisfaction (PS). It also attempts to measure patients' satisfaction with three dimensions extracted from exploratory factor analysis (EFA) by Principle component analysis method and conformity factor analysis (CFA). In addition, the study analyzes relationship between HSQ and PS in the context of Iranian hospital services, using structural equation modeling (SEM) from patients' perspectives. The maximum gap observed in "responsiveness" and the minimum one in "assurance". In addition, patients had the most satisfaction in "trust" with the mean of 3.83 followed by "General Satisfaction" with the mean of 3.68 and they had the least satisfaction in "Acceptance" with the mean of 3.53. Two measurement models were used for measuring hospital service quality and patient satisfaction and one structural model, which showed the relationship between them. The result of this study showed that there was a positive and significant impact from hospital service quality on patient satisfaction (0.463). In addition, there was a positive and significant relationship between hospital service quality and five dimensions. Furthermore, it was shown that patient satisfaction and three dimensions (General Satisfaction, Trust, and Acceptance) were associated with each other, significantly and positively. At last management strategies and practical suggestions were presented to hospital.