Health systems lost an estimated $3.1 billion in revenue from physical therapy leakage in 2022, according to a report published by Luna, an on-demand physical therapy provider..
Sixty percent of patients referred to physical therapy by their health system last year opted for a local clinic provider, representing a loss of $2,000 to $3,000 per patient, according to the report, which analyzed claims data from 3.9 million patients with commercial insurance in 2022.
Patient experience is a pivotal factor in referral leakage as patients increasingly seek care based on convenience and geographic reach, according to the June 27 report. Many patients are unwilling to travel more than 2-3 miles to receive care, with health systems' limited service availability also leading some patients to seek more accessible providers closer to their home.
The report found that physical therapy leakage rates differ by region, with the Northeast facing greater challenges in preventing patient attrition compared to others:
- Northeast: 69 percent leakage rate, costing an estimated $1.02 billion in revenue
- West: 62 percent leakage rate, costing an estimated $623 million.
- Midwest: 51 percent leakage rate, costing an estimated $562 million.
- The South: 45 percent leakage rate, but leakage costs health systems in the region an estimated $697 million in revenue.
Click here for more details on the report.