Understand, Identify, & Stop the 3 Types of Hospital Leakage
Hospital leakage, the migration of patients, referrals, or procedures out of a healthcare network, is a significant challenge for many organizations. It not only undermines financial performance but also fragments patient care and hinders efforts to deliver coordinated, value-based outcomes. As health systems face increasing pressure to improve efficiency and reduce costs, minimizing leakage is more important than ever.
Hospital leakage manifests in 3 primary forms: procedure leakage, referral leakage, and patient choice leakage. Each type stems from different root causes, but all contribute to lost revenue, care discontinuity, and diminished patient satisfaction.
This white paper outlines both proactive and reactive approaches to minimize leakage across all three areas. You’ll also learn how platforms like Marketware’s PRM can help uncover leakage trends, align providers, and improve patient retention through better data, stronger relationships, and clearer communication.
In this white paper, explore the causes and impact of these 3 common forms of leakage, and what your team can do about them:
1. Procedure Leakage
In-Network Providers Take Patients Out-of-Network to Perform Procedures
Even when patients stay within your network, providers may perform procedures at out-of-network locations due to access issues, technology preferences, or financial incentives. This practice results in lost revenue and fractured care coordination, especially in high-revenue specialties like orthopedics or cardiology.
2. Referral Leakage
In-Network Providers Refer Patients to Out-of-Network Providers
Many referrals made by in-network providers still end up outside the system. Longstanding habits, operational convenience, or lack of awareness about in-network specialists can all contribute. Without insight into referral patterns, it’s easy to lose patients, along with the downstream revenue they generate.
3. Patient Choice Leakage
Patient Chooses to Leave Your Network After Seeing Your Provider
Sometimes patients opt to leave the network themselves, citing convenience, perceived quality, insurance coverage, or stronger brand recognition elsewhere. Left unaddressed, this form of leakage reduces market share and complicates care delivery under value-based models.