Estimated read time 3 minutes
Your clinic may be missing out on revenue without you ever truly realizing it. Most clinics tend to focus their marketing efforts on getting patients in the door. However, many forget that it is equally, if not more important, to ensure that once in the door all patients complete their plan of care. Roughly 70% of patients fail to complete their plan of care, while studies show 12-20% dropout (2,3) of care after only one session.
Not only does this mean that patients are not getting better, but it also means that your clinic is losing the revenue it would have earned if those patients had finished their plan of care. On the surface it is easy to assume this is a minor loss in revenue, but below we will show you how the average clinic loses over $150,000 per year due to lack of patient retention (1).
Lack of patient retention causes major losses in revenue. A local Philadelphia clinic working with Avior realized this the hard way. We initially asked what the head clinician thought their dropout rate was. They responded the way most clinics do: assuming a dropout rate of 5-10%. Together, Avior and the clinic gathered the necessary information to determine the clinic’s true dropout rate and the results proved shocking.
Fitting to the national average, this clinic found that over 70% of their patients fail to complete their care, with patients dropping out after the fourth session on average. With the clinic’s average length of care being just under nine visits, that means each patient who failed to complete their plan of care was missing 5 visits. These missed sessions lead to roughly $500 in lost revenue per patient, with an average session cost of $100.
Yet, while some may view this as a disappointing reality, we at Avior see this as an opportunity for clinics. Once a clinic discovers the magnitude of their loss in revenue due to lack of patient retention, they have also discovered a way in which they can drastically grow their revenue.
A mere 10% improvement in patient retention can lead to revenue increases per therapist of over $8,000 per year. So next time your clinic is discussing ways in which to increase your revenue, remember: minor improvements to your patient retention can lead to dramatic increases in your revenues.