How to Retain Patients: Referral Measurement and Management
Do you know how much revenue your organization is losing from referral leakage? In our work with clients around HSG Physician Network Intelligence, a comprehensive physician referral management platform focused on downstream revenue growth, we systematically identify and monitor the referral patterns of physicians to understand opportunities for our clients to increase referral capture. Below are three examples of decisions that were made based upon Physician Network Intelligence analysis and measurement of referral patterns:
Aligning an Independent Family Medicine Physician
Dr. Smith, an independent Family Medicine physician, was identified as sending 40% of his total referral volume to specialists and facilities associated with our client. Based on his practice volume, we identified an incremental net patient revenue opportunity of $960,000. The client prioritized employment of Dr. Smith and worked with him to mitigate any barriers his practice had to getting referral access to our client’s facilities and specialists. After three months, Dr. Smith’s referral data showed an increase in loyalty from 40% to 90%, resulting in an annualized downstream revenue gain of approximately $800,000.
Changing Specialty Referral Patterns for Employed Primary Care Practice
Primary Care Associates, an employed primary care practice with 8 physicians, was identified as being 85% loyal as a group. However, through analysis of specialty referral patterns, we were able to identify that cardiology referral volume was being split between two independent cardiology groups. One of those cardiology groups was exceptionally loyal to our client’s facility, sending 95% of all of their cases there, while the other group sent only 30% of cases. Based on this analysis, our client was able to work with Primary Care Associates to move referral volumes to the loyal cardiology practice, resulting in an annualized downstream revenue gain of approximately $600,000.
Intervening in Referral Pattern Shifts
Dr. Jones, an independent orthopedic surgeon, was identified by our client as having a drop in case volume but the client hospital was not sure if this meant Dr. Jones’s practice volume was down or if cases were being redirected. Through Physician Network Intelligence, Dr. Jones was identified as having decreasing referral loyalty over a period of six quarters, with his referral loyalty dropping from 65% to 45%. The resulting downstream revenue loss was $550,000, annually. Driven by the data, our client prioritized working with Dr. Jones to identify operational and access issues that were causing the issue.
HSG Physician Network Intelligence provides the platform for developing an ongoing program for strategic measurement and management of physician referral patterns.
To discuss how to implement Physician Network Intelligence in your organization, contact Travis Ansel, Director, at 502-814-1182 or TAnsel@HSGadvisors.com.