ROCKLIN, Calif., Aug. 17, 2021 /PRNewswire/ -- More than 55% of patients referred to health system physical therapy clinics are seeking care elsewhere––a trend that is costing provider organizations billions of dollars annually. The scale of this referral leakage points to rehab/physical therapy primary driver of such losses in health systems. Indeed, even those health systems most successful at patient retention are losing substantial amounts of patients and revenue, with the majority having leakage rates well above 50 percent.
These insights and more are revealed in The Hidden Problem Costing Health Systems Millions: Rehab Referral Leakage, a new national study of referral leakage in health system physical therapy programs. The study, issued by Luna, the leader in on-demand physical therapy, analyzed claims data from 3.4 million patients, and reveal that the related health systems lost more than $2.5 billion in revenue in 2019.
Key findings from the report include:
- More than 1.9 million of the 3.4 million patients analyzed (55.9 percent) left the referring health system for physical therapy care.
- While the majority of health systems have leakage rates of at least 50 percent, some systems see more than 80 percent of their referrals seek care elsewhere.
- For patients seeking in-network care, a primary driver is proximity to a clinic, with patients unwilling to travel more than a few miles to an affiliated clinic before seeking care elsewhere.
"Many health systems have been successful in running a low- to mid-margin physical therapy service line," said Ryan Lewis, Head of Business Development for Health Systems at Luna. "That being said, maintaining patients, particularly with the abundance of third-party clinics and other options for individuals to choose from, is limiting the potential upside. This analysis sheds light on the magnitude of opportunity that exists and illustrates the financial toll that leakage can have on health systems' bottom lines."
The analysis was conducted using U.S. commercial health care claims data compiled by Definitive Healthcare. Luna analyzed the number of patients prescribed physical therapy by a health system and the number who sought care from a different provider within the same metro area. The analysis does not capture patients who did not seek care at all, meaning the true leakage statistics are even higher than the data suggest.
Luna helps solve the leakage problem for health systems by providing partners access to their broad network of local therapists, meaning systems can provide services through Luna to the entire geography they need to serve without needing to build new clinics. Partner systems also gain access to Luna's award-winning technology platform, which enables the mobilization of quality care in the field, along with Luna's sophisticated processes, resources, and support.
Already, prominent health systems like Emory, Scripps, EvergreenHealth, and the Baylor Scott & White Institute for Rehabilitation have partnered with Luna to help reduce PT referral leakage rates. Luna works with health systems, physical therapy groups, and orthopedic groups to provide at-home care via in-person delivery in 32 markets and 19 states across the country.
The report, in The Hidden Problem Costing Health Systems Millions: Rehab Referral Leakage, is available for download.
For more information on how Luna helps health systems eliminate rehab referral leakage, visit the company's Health Systems resource page.
About Luna
Luna is the leader in on-demand physical therapy, delivering outpatient physical therapy beyond the four walls of a clinic. For patients, Luna has reimagined the physical therapy experience, matching them with a therapist for in-person care at the time and location of their choosing and ongoing coaching through an easy-to-use app. For physical therapists, Luna enables them to manage their careers with flexibility and autonomy, using a platform that makes scheduling efficient, documentation easy, and billing automatic.
For leading health systems and orthopedic groups like Emory Healthcare, Scripps Health, and Rothman Orthopaedic Institute, Luna improves revenue for rehabilitation services by dramatically expanding access and reach, improving adherence, reducing costs, and standardizing quality. Luna is the fastest growing physical therapy provider, with more than 1,000 exceptional therapists providing services in 19 states across the country. For more information, please visit www.getluna.com.
Media Contact:
Grant Evans
Amendola Communications for Luna
(215) 582-8146
[email protected]
SOURCE Luna
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