Health systems miss out on $2.5B in potential physical therapy revenue a year

Health systems are losing out on $2.5 billion in revenue per year from physical therapy leakage, according to an Aug. 17 report from Luna, an on-demand physical therapy provider. 

For the study, Luna analyzed claims data from 3.4 million patients with commercial insurance to understand referral leakage in health system physical therapy programs in 2019.

The report found that of the 3.4 million patients analyzed, more than 1.9 million, or 55.9 percent, left the health system and sought physical therapy care elsewhere. 

Luna noted that the losses resulted in $2.5 billion in lost revenue for health systems, but that the losses would be higher if the study included Medicare beneficiaries.

The study also found that even the most successful and highest rated health systems are losing substantial revenue from physical therapy leakage.

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