Insights on Patient Referrals: The Not-So-Secret Weapon for a Growing Physician Practice

Insights on Patient Referrals:The Not-So-Secret Weapon for a Growing

Physician Practice

2012 Confidential | 2

par8o is named after the Italian economists, Vilfredo Pareto who first defined the concept of a “Pareto Efficiency” - a system is able to maximize resource utilization for each and every participant.

par8o seeks to introduce Pareto efficiency to the healthcare industry, improving patient choice and access to healthcare while lowering costs.

Aboutr8oPar8o

par8o surveyed 200 physicians…

You won’t believe what they had to say about patient referrals…


Physicians Understand the Importance of Referrals

78% of physicians surveyed consider new patient referrals very or extremely important

1 2 3 4 5

4% 4%

14%

32%

46%

Notes: Par8o survey, Dec 2011N = 94 PCPs, 101 Specialists

Importance of New Patient Referrals on a Scale of 1 to 5

(1=not at all important; 5=extremely important)


Referrals Important to All MDs

87% of specialists and 68% of PCPs consider referrals extremely or very important

PCPs Specialists

68%

87%


Consider New Patient Referrals Extremely / Very Important


Nearly All Physicians See Referrals

96% of physicians see at least one referred patient each week and 30% see 41 or more referred patients each week,

with specialists seeing more referrals than PCPs

0 Referrals Per Week

1 to 5 6 to 10 11 to 20 21 to 30 31 to 40 41 to 50 51+

4%

12%14%

17%15%

7%

13%

17%

Referrals Per Week



Referrals Are Key to a Growing Practice

In 41% of practices, more than half of new patients come from referrals

0% to 10% 11% to 25% 26% to 50% 51% to 75% 76% to 100%

17%

21%

18%

23%

18%

Percentage of Total Patients Starting As Referrals



Specialist Practices Know the Upside of Patient Referrals

65% of specialists say their practices generate more than half of new patients from referrals

0% to 10% 11% to 25% 26% to 50% 51% to 75% 76% to 100%

0%

15%18%

35%

30%


Percentage of Specialists’ Total Patients Starting as

Referrals

Few Referral

s

Mostly Referral

s


1 to 5 MDs 6 to 10 11 to 20 21 to 100 101+

59%70%

53%38% 50%

39%30%

42%52% 50%

51% to 100%0% to 50%

In Larger Practices, More Patients Come From Referrals



In most practices with more than 20 physicians, more than half of new patients start as referrals


Hospital-Based Employed

Hospital-Based Private

Office/Clinic Employed

Office/Clinic Private

60%39% 47%

59%

36%50% 53%

38%

51% to 100%

0% to 50%



Referrals Differ by Practice Type

Physicians working in hospital-based private practices and as employees in offices or clinics see more patients coming from referrals than those

who work in private offices or as employees at hospitals


Average Referral Worth Estimated at Almost $5,000

Physicians believe each new patient may generate an average of $4,553 over the course of their relationship with the practice, with both PCPs and

specialists estimating a lifetime value of over $3,000

Total PCPs Specialists

$4,553

$5,734

$3,417


Average Lifetime Revenue Generated by One New Patient


With an average revenue of $5,414, new patients have the highest estimated lifetime value in the East vs. a low of $2,824 in the South and around $3,000

in the West and Midwest

Referrals Worth Most in the East

Western MDs estimate the value of a lifetime new patient at $3,346

Southern MDs estimate the lifetime value of a new patient at $2,824

Eastern MDs estimate the

lifetime value of a new patient at

$5,414

Midwestern MDs estimate the

lifetime value of a new patient at

$3,043



Referrals Translate Into Big Income


Physicians working in practices that see…

…say each newly referred patient brings an

average lifetime value of…

$6k1-10 referred patients per week

11-30 referred patients per week

31-50 referred patients per week

51+ referred patients per week

$4k

$3k

$4k

…which means that 1 week’s worth of referral patients has an overall

potential value of…*

$6k-$60k

$44k-$120k

$91k-$150k

$200,000 or more

*Potential value multiplies average lifetime value estimated by number of referred patients seen per week; Physicians who see lower numbers of referrals per week place a lifetime higher value on each referral


Referrals Are Big Business Savvy physicians place a great emphasis on

patient referrals as a primary way of growing their practices

Par8o will build on that

The first step is Referrals. Reinvented.



par8o, Inc.Thank You

Learn more:http://www.par8o.com

Insights on Patient Referrals: The Not-So-Secret Weapon for a Growing Physician Practice

Health & Medicine

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