In today’s health care ecosystem, patient retention has become a $3 billion dollar issue for health systems, with patient leakage (also known as patient keepage) at its core. Despite efforts to keep patients within their networks, a significant portion continue to seek care elsewhere, leading to financial losses. Interestingly enough, physical therapy proves to be key in improving patient retention, as recent data shows that rehab-related leakage is the number one driver of leakage in health systems.
Understanding patient leakage
Patient leakage happens when patients referred for additional care opt to receive treatment outside their original health care system. This trend is more common than one might think, with nearly 60 percent of patients making this choice. The main factors in this leakage include patient preference, convenience, and limited service availability within the original health system.
The impact of referral leakage on health systems is substantial. Recent research indicates that a typical health system experiences rehab referral leakage rates of around 50 percent to 60 percent. This results in substantial revenue losses, amounting to over $3.1 billion in 2022 alone. Each patient who leaves represents a financial loss of $2,000 to $3,000, highlighting the importance of effective patient retention strategies.
The role of physical therapy in patient retention
Physical therapy has emerged as a critical factor in patient retention. A recent study by Wakely Consulting revealed that increasing PT utilization not only lowers overall health care costs but directly addresses rehabilitation, the leading cause of patient leakage. Given this, implementing an effective PT strategy is crucial for enhancing patient retention. By bringing physical therapy directly to the patient, in-person, in-home PT provides convenient patient-centric care, directly addressing the reasons patients choose to leave their health care network.
Providing PT through in-home services within the health system ensures a seamless connection between patients and therapists. With 87 percent of physical therapy cases not needing heavy machinery (e.g., a clinic space), this at-home approach not only meets patients’ convenience needs but also maintains continuity of care. By offering in-home PT, health systems can mitigate the factors that drive patients to seek care elsewhere, thereby improving retention rates, patient adherence, and outcomes.
Strategies for health systems
The health care landscape has evolved significantly post-COVID, and the stakes for patient retention have never been higher. Health systems must swiftly adapt to offer solutions that align with their patients’ evolving needs—or risk financial drain. One crucial aspect of adapting to this new landscape is providing an at-home option for patients, allowing for easier access to care. If health systems can offer patients at-home care opportunities, this will allow patients to maintain continuity of care inside the health system.
While there are benefits to implementing this at-home model, there may be some hesitation associated with this approach. A common concern when implementing new strategies is maintaining high-quality care while adopting in-person, in-home PT services. Additionally, there may be concern about potential patient cannibalization. Addressing these concerns involves establishing rigorous quality control measures, such as regular training and certification for in-home therapists, and leveraging telehealth platforms for ongoing support and communication. It is crucial to ensure that in-home services complement rather than compete with traditional care settings, fostering a seamless integration that enhances overall patient care.
Embracing in-home PT for improved retention
Referral leakage is impacting patient retention across health systems nationwide. As a result, adopting in-person, in-home PT solutions is one of the most effective strategies for health systems to address this challenge. By prioritizing patient convenience and continuity of care, health systems can significantly improve retention rates, leading to better patient outcomes and financial stability. The journey toward improved patient retention is ongoing, and through innovative approaches and a commitment to high-quality care, health systems can achieve significant progress.
Palak Shah is a health care executive.
