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Insights on Patient Referrals: The Not-So-Secret Weapon for a Growing Physician Practice
- 1. Insights on PatientReferrals: The Not-So-Secret Weapon for a Growing Physician Practice
- 2. Aboutr8oPar8o par8o isnamed 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. 2012 Confidential | 2
- 3. par8o surveyed 200physicians… You won’t believe what they had to say about patient referrals… 2012 Confidential | 3
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- 5. Physicians Understand the Importance of Referrals 78% of physicians surveyed consider new patient referrals very or extremely important Importance of New Patient Referrals on a Scale of 1 to 5 (1=not at all important; 5=extremely important) 46% 32% 14% 4% 4% 1 2 3 4 5 Notes: Par8o survey, Dec 2011 N = 94 PCPs, 101 Specialists 2012 Confidential | 5
- 6. Referrals Important toAll MDs 87% of specialists and 68% of PCPs consider referrals extremely or very important Consider New Patient Referrals Extremely / Very Important 87% 68% PCPs Specialists Notes: Par8o survey, Dec 2011 N = 94 PCPs, 101 Specialists 2012 Confidential | 6
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- 8. Nearly All PhysiciansSee 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 Referrals Per Week 17% 17% 15% 14% 13% 12% 7% 4% 0 Referrals Per 1 to 5 6 to 10 11 to 20 21 to 30 31 to 40 41 to 50 51+ Week Notes: Par8o survey, Dec 2011 N = 94 PCPs, 101 Specialists 2012 Confidential | 8
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- 10. Referrals Are Keyto a Growing Practice In 41% of practices, more than half of new patients come from referrals Percentage of Total Patients Starting As Referrals 23% 21% 18% 18% 17% 0% to 10% 11% to 25% 26% to 50% 51% to 75% 76% to 100% Notes: Par8o survey, Dec 2011 N = 94 PCPs, 101 Specialists 2012 Confidential | 10
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- 12. Specialist Practices Knowthe Upside of Patient Referrals 65% of specialists say their practices generate more than half of new patients from referrals Percentage of Specialists’ Total Patients Starting as Referrals Mostly Referrals 35% 30% 18% 15% Few Referrals 0% 0% to 10% 11% to 25% 26% to 50% 51% to 75% 76% to 100% Notes: Par8o survey, Dec 2011 N = 94 PCPs, 101 Specialists 2012 Confidential | 12
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- 14. 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 Percentage of Total Patients Starting As Referrals 30% 39% 42% 50% 52% 51% to 100% 0% to 50% 70% 59% 53% 50% 38% 1 to 5 MDs 6 to 10 11 to 20 21 to 100 101+ Notes: Par8o survey, Dec 2011 N = 94 PCPs, 101 Specialists 2012 Confidential | 14
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- 16. Referrals Differ byPractice 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 Percentage of Total Patients Starting As Referrals 36% 38% 50% 53% 51% to 100% 0% to 50% 60% 59% 39% 47% Hospital-Based Employed Hospital-Based Private Office/Clinic Employed Office/Clinic Private Notes: Par8o survey, Dec 2011 N = 94 PCPs, 101 Specialists 2012 Confidential | 16
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- 18. Average Referral WorthEstimated 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 Average Lifetime Revenue Generated by One New Patient $5,734 $4,553 $3,417 Total PCPs Specialists Notes: Par8o survey, Dec 2011 N = 94 PCPs, 101 Specialists 2012 Confidential | 18
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- 20. Referrals Worth Mostin the East 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 Midwestern MDs estimate the lifetime value of a new patient Eastern MDs Western MDs estimate the estimate the value of a lifetime new at $3,043 lifetime value of a patient at $3,346 new patient at $5,414 Southern MDs estimate the lifetime value of a new patient at $2,824 Notes: Par8o survey, Dec 2011 N = 94 PCPs, 101 Specialists 2012 Confidential | 20
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- 22. Referrals Translate IntoBig Income …which means that 1 week’s …say each newly referred worth of referral patients has Physicians working in patient brings an average an overall potential value of…* practices that see… lifetime value of… 1-10 referred patients $6k $6k-$60k per week 11-30 referred patients per week $4k $44k-$120k 31-50 referred patients per week $3k $91k-$150k 51+ referred patients per week $4k $200,000 or more *Potential value multiplies average lifetime value estimated by number of referred patients Notes: seen per week; Physicians who see lower Par8o survey, Dec 2011 numbers of referrals per week place a lifetime N = 94 PCPs, 101 Specialists higher value on each referral 2012 Confidential | 22
- 23. Referrals Are BigBusiness 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. 2012 Confidential | 23
- 24. par8o, Inc. Thank You Learn more: http://www.par8o.com 2011 Confidential | 24