Managing Physician Relationships: Loyalty versus Leakage

This is the first post in our three part series on the ROI of physician relationship management. Read part two and part three of this series, where we discuss how physician relationship management can help in growing your bottom line and identify revenue streams.

What is the cost of a lost referral?

One large hospital chain calculated that each case referred to the hospital generated between $11,000 and $12,000 in revenue. Another study showed that a physician—primary care or specialist—generates on average $1.5 million in hospital revenue each year. It’s easy to see that even a moderate level of leakage—referrals and procedures lost to competitors—can significantly affect a hospital’s bottom line.

Leakage Has a Cure: Physician Loyalty

ROI of Physician Relationship ManagementYour hospital may have data showing which cardiologist booked the most OR hours last month. But do you know which orthopedic surgeon referred 60% of her cases to another hospital during that same period? Do you know which service lines within your hospital are the most likely to grow with the least investment required? And do you know whether your caseload has the right mix of commercial/government payers? Inpatient and outpatient care?

You need to know, because, simply put, the strategic growth of referrals is the key to revenue growth, and leakage is unacceptable.

Enabling those on your team responsible for managing the physician relationship to track and evaluate the frequency and results of their interactions with physicians empowers them to focus their time not only on retaining loyal physicians, but also on expanding the number of doctors whose loyalty exceeds their leakage. Hospitals can then drill down into this data to assess whether they are getting the right referrals.

A team member can approach a physician armed with useful information. He can ask the physician whether there are obstacles to referring a larger percentage of patients to the hospital. Are there scheduling or equipment issues the hospital can address? And most importantly, are there quality issues that the doctor is concerned about?

Fixing the Referral Leak

If a hospital is to be held accountable for patient outcomes, it needs to remain connected to the patient throughout all phases of the patient journey. As soon as a referral is made to a competitor, the revenue for the referred services is lost and the hospital is no longer in control of the patient outcome. Increasing physician loyalty (reducing leakage) is critical not only to growth but to quality control.

Evariant PRM enables hospitals to quantify loyalty and leakage. If you are familiar with’s powerful customer relationship management platform, you will see similar capabilities in Evariant’s Physician Relationship Management solution. Now hospitals have a powerful tool to directly measure the impact of outreach efforts and affirm or course-correct the growth strategies they have put in place.

Evariant’s sophisticated and comprehensive use of data to formulate growth strategies, measure progress toward goals, and attribute results to specific stimuli gives hospitals a distinct advantage in their efforts to boost loyalty, reduce leakage, and increase revenue.

How to Prove ROI of Physician Relationship Management



Evariant provides a leading healthcare CRM solution suite designed to help health systems transform the healthcare experience for their consumers, patients, and physicians. Built on the Salesforce Platform, our solutions foster richer consumer/patient engagement and tighter physician alignment. Powered by cutting-edge data and analytics, Evariant enables health systems to effectively communicate care options that increase revenue and market share, while optimizing network utilization. Many of the top health systems have selected Evariant to thrive in today’s hyper-competitive and rapidly changing environment.