National study: Health Systems Lose $3.1 Billion In Physical Therapy Revenue

Health systems lose an estimated $3.1 billion revenue from physical therapy referral leakage across the 3.9 million commercially insured patients studied in a new national report by Luna, the leading provider of in-home, in-person physical therapy.

In the report based on 2022 national data, 60% of patients referred to physical therapy by their health system opted for a local clinic provider, equating to a loss of $2,000-$3,000 per patient.

Physical Therapy Revenue

Patient preference plays a significant role in referral leakage as many choose to seek care elsewhere based on convenience and geographic reach. For instance, many patients are unwilling to travel more than 2-3 miles to receive healthcare. The limited service availability within health systems also forces some patients to seek more accessible providers closer to their homes.

With over 38,000 clinics nationwide, patients have ample choice when it comes to physical therapy. This superior geographic coverage can serve patients closer to where they live, which creates significant competitive cannibalization on health systems.

“Referral leakage is deeply worrying for health systems, and investing in costly additional locations is not the answer. Health systems need to find creative, innovative solutions to survive, post-pandemic. Offering outpatient physical therapy direct to a patient’s home is a truly advantageous strategy. It expands patient access and geographic coverage, enhances patient satisfaction, and standardizes patient care,” said Palak Shah, co-founder and head of clinical services at Luna.

Leading health systems such as Providence, Emory Healthcare, Intermountain Healthcare, UCLA Health and Scripps Health have partnered with Luna to offer outpatient physical therapy in the convenience of a patient’s home.

Luna currently operates across 50 markets in 27 states and has treated almost 40,000 patients in their homes.

Unlike remote or virtual care, Luna’s licensed physical therapists provide 1:1 hands-on care in the convenience of the patient’s home. Through Luna, patients can request an in-home physical therapy via the company’s app. A licensed physical therapist is then scheduled to arrive at the patient’s home within one hour for a full 45-55 minute appointment.

In 2022, Luna became the fastest growing physical therapy clinic nationally with 6,183 percent growth in visits during the four consecutive years since it was founded in 2018. This is higher than any reported growth during the same time frame from any physical therapy clinic.

Luna has maintained its approach to high-quality care during this record period of growth with a three year running world-class NPS rating, specifically 87 in 2022. According to a recent McKinsey report, up to $265 billion worth of care services, representing up to 25 percent of the total cost of care, is expected to shift to the home by 2025.


Medical Device News Magazine
Medical Device News Magazine provides our readership with breaking medical device / biotechnology news. Our subscribers include medical specialists, device industry executives, investors, and other allied health professionals, as well as patients who are interested in researching various medical devices. We hope you find value in our easy-to-read publication and its overall objectives! Medical Device News Magazine is a division of PTM Healthcare Marketing, Inc. Pauline T. Mayer is the managing editor.

More News!

The ArthroFree system is the first FDA-cleared wireless camera for arthroscopy and general endoscopy, both areas of minimally invasive surgery. The system is designed to help surgeons work with aximum dexterity and focus.
The project, which was led by the University of Southern California, included large increases in representation among men of African, Hispanic and Asian ancestries, that were contributed in part by an ongoing collaboration between the U.S. Department of Veterans Affairs and DOE reports Argonne.
This innovative software turns smartphones into medical-grade stethoscopes, allowing people to capture, analyze, and share critical heart health data with medical personnel from the comfort of any location notes Sparrow BioAcoustics.
"Taewoong Medical becoming an Olympus group company is also a major milestone in our global growth strategy," said Henry Shin, CEO of STARmed. "We look forward to our products being made available to more patients through Olympus' global distribution network."
The company reports they have successfully met the six-month primary endpoint for the first-ever female patient implanted with the UroActive™ System, the first smart automated artificial urinary sphincter (AUS) to treat SUI.

By using this website you agree to accept Medical Device News Magazine Privacy Policy