What You Should Know:
- Health systems lose an estimated $3.1 billion in revenue from physical therapy referral leakage across the 3.9 million commercially insured patients studied in a new national report by Luna, the leading provider of in-home, in-person physical therapy.
- In the report based on 2022 national data, 60% of patients referred to physical therapy by their health system opted for a local clinic provider, equating to a loss of $2,000-$3,000 per patient.
Analysing the Burden of Physical Therapy Referral Leakage
Referral leakage is greatly influenced by the preferences of patients, as they often opt for alternative care options due to convenience and proximity. For instance, many patients prefer not to travel beyond 2-3 miles to receive healthcare services. Additionally, the limited availability of services within health systems compels some patients to seek out more accessible providers near their homes.
With a staggering number of over 38,000 clinics spread across the country, patients have a wide range of options for physical therapy. This extensive geographic coverage allows patients to receive care in closer proximity to their residences, leading to substantial competition that can negatively impact health systems.
“Referral leakage is deeply worrying for health systems, and investing in costly additional locations is not the answer. Health systems need to find creative, innovative solutions to survive, post-pandemic. Offering outpatient physical therapy direct to a patient’s home is a truly advantageous strategy. It expands patient access and geographic coverage, enhances patient satisfaction, and standardizes patient care,” said Palak Shah, co-founder and head of clinical services at Luna.
Leading health systems such as Providence, Emory Healthcare, Intermountain Healthcare, UCLA Health and Scripps Health have partnered with Luna to offer outpatient physical therapy in the convenience of a patient’s home.
