par8o insights on patient referrals: it (currently)takes an army

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Insights on Patient Referrals: It (Currently)Takes an Army

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Insights on Patient Referrals:It (Currently)Takes an Army

2011 Confidential | 2

About

par8ois named after the Italian economist, Vilfredo Paretowho first defined the concept of a “Pareto Efficiency” in which a system is able to maximize resource utilization for each and every participant.

par8oseeks to introduce Pareto efficiency to the healthcare industry, improving patient choice and access to healthcare while lowering costs.

2011 Confidential | 3

par8o surveyed 200 physicians…

You won’t believe what they had to say

about patient referrals…

2011 Confidential | 4

par8o, Inc.Thank You

[email protected]

2011 Confidential | 5

Medicine Is a Hectic Business

49% of physicians surveyed see more than 100 patients each week

and only 14% see fewer than 50

Q4. On average, how many patients do you see per week?

2%

12%

37%

30%

19%

25 Or Fewer Patients Per Week

26 to 50 51 to 100 101 to 150 151+

Patients Per Week

Notes:

Par8o survey, Dec 2011

N = 94 PCPs, 101 Specialists

2011 Confidential | 6

Referrals Are the Business

96% of physicians see at least one referred patient each week and

30% see 41 or more referred patients each week

Q5. On average, how many of your patients per week are referrals from other physicians?

4%

12%

14%

17%

15%

7%

13%

17%

0 Referrals Per Week

1 to 5 6 to 10 11 to 20 21 to 30 31 to 40 41 to 50 51+

Referrals Per Week

Notes:

Par8o survey, Dec 2011

N = 94 PCPs, 101 Specialists

2011 Confidential | 7

par8o, Inc.Thank You

[email protected]

2011 Confidential | 8

Small Office, Big Staff

72% of physicians surveyed work in practices with 20 or fewer physicians, but 70% work in

practices with at least 6 staff members – practices might be small to mid-sized, but staff

sizes are medium to large

4%

26% 25%

45%

1 Staff Member 2 to 5 6 to 10 11+

Admin Staff Size

Q1: How many physicians are in your medical practice? (Including you)

Q3. How many non-medical/administrative staff people are employed in your practice?

28%

21%23%

19%

9%

1 to 5 MDs 6 to 10 11 to 20 21 to 100 101+

Practice Size

Notes:

Par8o survey, Dec 2011

N = 94 PCPs, 101 Specialists

2011 Confidential | 9

Every Office Requires a Big Staff

Very few practices are able to make it with just one staff member – even among the smallest

practices, only 7% employ just one administrative person

7% 7%

44% 39%

20%5%

39%

15%

27%

24%

6%

9%

39%53%

70%

94%

1 to 5 MDs 6 to 10 11 to 20 21 to 100 101+

11+

6 to 10

2 to 5

1 Staff Member

Admin Staff Size

Notes:

Par8o survey, Dec 2011

N = 94 PCPs, 101 SpecialistsQ1: How many physicians are in your medical practice? (Including you)

Q3. How many non-medical/administrative staff people are employed in your practice?

2011 Confidential | 10

More Staff Than Doctors

About half of small and mid-sized offices have more staff than physicians

Notes:

Par8o survey, Dec 2011

N = 94 PCPs, 101 SpecialistsQ1: How many physicians are in your medical practice? (Including you)

Q3. How many non-medical/administrative staff people are employed in your practice?

1-5

PHYSICIAN

OFFICES

6-10

PHYSICIAN

OFFICES

11-20

PHYSICIAN

OFFICES

48%

employ a

staff of 6 or

more

55%

employ a

staff of 6 or

more

53%

employ a

staff of 11

or more

2011 Confidential | 11

par8o, Inc.Thank You

[email protected]

2011 Confidential | 12

Specialties Are Built on Referrals

All specialists surveyed see at least one referred patient each week and 44% see 41 or more

referrals in a week, while 49% of PCPs see fewer than 10 referred patients each week

9%

21%19%

17%

13%

4%

12%

5%

0%

3%

9%

18% 18%

9%

15%

29%

0 Referrals per Week

1 to 5 6 to 10 11 to 20 21 to 30 31 to 40 41 to 50 51+

PCPs Specialists

Referrals Per Week

Q5. On average, how many of your patients per week are referrals from other physicians?

Notes:

Par8o survey, Dec 2011

N = 94 PCPs, 101 Specialists

2011 Confidential | 13

Specialties Require Manpower

More referrals mean more staffing needs – 49% of specialists work in practices with 11 or

more staff members and none of the specialists surveyed work in practices with just one

administrative employee

7%

26% 26%

41%

0%

27%25%

49%

1 Staff Member 2 to 5 6 to 10 11+

PCPs Specialists

Admin Staff Size

Q1: How many physicians are in your medical practice? (Including you)

Q3. How many non-medical/administrative staff people are employed in your practice?

Notes:

Par8o survey, Dec 2011

N = 94 PCPs, 101 Specialists

2011 Confidential | 14

par8o, Inc.Thank You

[email protected]

2011 Confidential | 15

Fewest Referrals in the South

In the South, 77% of PCPs see 10 or fewer referrals each week, while in the East,

only 29% of PCPs see 10 or fewer

14%5%

20%10%

15%

11%

43%

6%

77%

27%

60%

20%

43%

33%

29%

29%

12%

36%

10%

38%

24%

30%

15%

17%

12%

18%

10%

15%

5%

36%

10%

39%

18%29%

PCP Specialist PCP Specialist PCP Specialist PCP Specialist

51+

31 to 50

11 to 30

1 to 10

0 Referrals per Week

Referrals Per Week

Q5. On average, how many of your patients per week are referrals from other physicians?

East Midwest South West

Notes:

Par8o survey, Dec 2011

N = 94 PCPs, 101 Specialists

In the South, where 57% of practices see 10 or fewer referred patients each week,

offices are smallest, with 46% of practices employing only 2 to 5 administrative staff

2011 Confidential | 16

Few Referrals, Small Staff in the South

Q3. How many non-medical/administrative staff people are employed in your practice?

52% of offices in

the West employ

11+ staff

members(70% of PCPs,

43% of specialists)

46% of Southern

offices employ 2-5

staff members(53% of PCPs,

36% of specialists)

46% of Eastern

offices employ

11+ staff members(43% of PCPs,

48% of specialists)

38% of Midwestern

offices employ 6-10 staff

members(38% of PCPs,

39% of specialists)

Notes:

Par8o survey, Dec 2011

N = 94 PCPs, 101 Specialists

2011 Confidential | 17

par8o, Inc.Thank You

[email protected]

Small Office, Big StaffThe amount of support staff required to run a physician

practice is a sign of the extreme inefficiencies in the

healthcare marketplace

Par8o will change that

The first step is Referrals. Reinvented.

2011 Confidential | 19

par8o, Inc.Thank You

Learn more:

http://www.par8o.com