How To Calculate Patient Retention Rate

Key takeaways

Your patient retention rate measures loyalty and shows areas for improvement.
High retention boosts revenue and practice growth.
Accurate tracking needs clear data and formulas.
Follow-ups and reminders improve retention.

What is a patient retention rate?

As a healthcare provider, you should know how to calculate patient retention rates. This formula is essential, as it helps track overall patient satisfaction and loyalty. Your practice’s retention rate reviews how many existing patients you’re able to keep coming back versus those who choose to leave your practice for another provider.

It’s no different from a customer retention rate at retail stores or other businesses. While your medical practice may spend time and money drawing new patients, retention efforts tend to cost more than new patient acquisition. Patient retention strategies often require more commitment, but they have a higher payoff with increased revenue.

If you don’t understand critical retention metrics, you could make poor practice management decisions. For example, losing loyal customers may not always lead to a declining revenue churn rate, especially if your marketing is all about new customer acquisitions. This doesn’t mean that you won’t face major financial implications at some point due to failed retention efforts.

Your primary marketing focus should target both new and existing customers. Use Weave’s communication platform to enhance patient satisfaction and engagement. When you invest in these efforts, you can minimize patient dropout rates.

Why patient retention matters

Before we explain how to calculate patient retention rates, it’s worth noting how this simple statistic impacts your operations. A high retention rate can lead to:

Increased revenue: There is incredible value in keeping patients engaged and willing to book regular services at your clinic.
Improved patient satisfaction levels: Customer loyalty and overall satisfaction usually go hand in hand.
Operational efficiency: Your practice can run smoothly when your days are booked with appointments for existing patients.

Loyal patients tend to develop strong relationships with providers, and vice versa. They may be more apt to recommend your services to others, which can keep new patients coming through your doors.

Key factors affecting patient retention

As a healthcare provider, you want to avoid patient attrition at all costs. Unfortunately, many practice owners struggle to retain their base due to poor communication, long wait times, and inconsistent follow-ups.

Put yourself in your patient’s shoes. Would you want to keep seeing a physician whose office doesn’t keep you in the loop about upcoming appointments or makes you spend precious free time in the waiting room because they’re behind schedule? These factors tie into patient care and may be the reason why you’re struggling to retain patients.

Improve their experience by addressing common pain points. Online appointment scheduling tools cut down on administrative burdens and simplify the booking process. You can also encourage appointment keeping by offering flexible solutions like telehealth services.

Automated reminders ensure the patient attends every check-up instead of forgetting them. When it comes to billing and payment processes, focus on transparency and make your team available for any questions or concerns.

How to calculate patient retention rate

How can you quantify retention rates within your practice? Healthcare professionals rely on the following formula:

Patient Retention Rate (PRR) = [(E – N) / S] × 100

In this formula, E represents the number of patients at the end of a specific period. N represents new patients acquired during the period, and S signifies the patients at the start of the period. If you’re wondering how to calculate patient retention rate, use the following example for context.

Say you want to calculate retention rates year-over-year. You’ll have to determine how many patients your practice has on January 1 versus December 31 of a given year, as well as the number of new ones acquired during that same period. Imagine you begin the year with 300 patients, have 320 patients at the end of the period, and acquired 30 new ones along the way.

When you plug these figures into a retention rate calculator, you’ll end up with a PRR of 96%. A high rate like this helps your practice prevent lost revenue and highlights your ability to retain satisfied patients.

Accurate calculations are crucial for effectively demonstrating your successes or shortcomings. Avoid including inactive patients and never double-count new ones, as this can alter the result.

Tools and methods for tracking retention

Now that you know how to calculate patient retention rates, make sure you track your progress throughout each period. Electronic health records, patient management systems, and other engagement insight tools can streamline the process.

If you operate a smaller practice, manual tracking methods may suit you best. Maintain up-to-date files regarding customers acquired as well as existing ones who regularly schedule visits. Transform the hard numbers into visual data with charts and other reports so you can monitor trends over time.

Metrics related to patient retention

You can create effective engagement solutions when you have a better understanding of your retention rate. But it’s not the only metric worth tracking. Experts recommend monitoring the following:

Churn rate: This refers to the number of patients who leave your practice over a period of time.
Visit frequency: See how often people come to your clinic for appointments to rule out inactivity.
Patient lifetime value: Determine how much revenue a patient can bring to your practice throughout their lifetime if you retain them.

Each of these factors gives you insight into your loyal customer base and whether you need to work harder to avoid patient attrition. For example, a loyal patient who visits your clinic three times every year could provide maximum revenue compared to one who has only visited once and has yet to make another appointment. An increasing churn rate may lead you to implement loyalty programs as an effective marketing tactic.

Monitor these metrics with ease thanks to Weave. Our analytics tool explores a wide range of data that pertains to your practice’s growth.

Strategies to improve patient retention

Knowing how to calculate patient retention rate is a crucial first step in assessing your practice’s ability to keep patients coming back for care. If you’re unhappy with the result and want to increase patient retention, there are a few strategies worth trying, such as:

Enhancing appointment reminders and follow-up communication
Simplifying check-in processes to reduce wait times and improve patient experiences
Implementing referral and loyalty programs
Launching ongoing education initiatives

Always use data to measure your performance and find the most effective marketing tactic.

Best practices for maintaining high patient retention

Reducing patient churn rates boils down to a few key factors. Set realistic retention goals for your practice and work toward them with ongoing monitoring and data analysis.

Your revamped strategy may include ongoing staff training and implementing new technology to address patient pain points.

Retain more patients with Weave’s modern solutions

Now that you know how to calculate patient retention rates, you can better track your practice’s success. Use the tips mentioned above for improving patient retention and reducing churn rates.

Make your medical care even more appealing with engagement and communication tools from Weave. With the right technology, you can build lasting relationships with your patients. Request a demo today and join the growing list of providers who rely on Weave.

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