Most rehab therapy leaders believe their referral processes are working well. In fact, nearly two-thirds (62%) say their clinics use fully interoperable, automated referral systems.
The reality? The referral loop in rehab therapy is still deeply broken.
New research reveals a striking gap between how leaders perceive their referral workflows and how those workflows actually function in practice—creating delays in care, unnecessary administrative burden, lost revenue, and frustrated patients. Interoperability in rehab therapy isn’t just a compliance issue anymore. It’s a defining operational and competitive function.
The Perception Gap: Interoperability in Rehab Therapy
Fax machines, phone calls, shared spreadsheets, and proprietary referral portals remain the dominant tools powering referrals in rehab therapy today. While these workarounds may feel familiar or “good enough,” they fall far short of true interoperability.
The data shows:
- 24% of therapy leaders still operate with open-loop referrals, where no confirmation is sent back to the referrer
- 14% rely on manual closed-loop workflows, requiring staff to fax, call, or email updates
- 52% only provide referral status updates if the referring provider explicitly asks for them
In other words, many clinics believe they’ve “checked the box” on interoperability, when in reality they’re still running fragmented, labor-intensive processes that hide risk and inefficiency.
Broken Referrals Hurt Patients, Staff, and Revenue
1. Patient Experience Suffers First
Delays between referral and treatment are common and costly. Nearly 58% of patients report experiencing a delay in rehab therapy care during the referral process, and among those patients:
- 31% say their condition worsened
- 25% lost motivation to attend therapy
- 21% sought care elsewhere
Administrative friction compounds the problem. An overwhelming 89% of patients are required to re-submit personal or medical information at intake, and 41% report low satisfaction with scheduling their first appointment.
These aren’t small inconveniences—they directly impact outcomes, adherence, and trust.
2. Staff Carry the Burden
When systems don’t talk to each other, staff are forced to compensate. One time-and-motion study cited in the report shows that manual referral workarounds add 10–13 minutes of administrative time per referral, pulling clinicians and front-office teams away from patient care.
Nearly half of leaders say poor interoperability:
- Increases staff workload and costs
- Makes referrals difficult—or even impossible—to complete
- Contributes to burnout and reduced morale
3. Revenue Leaks Quietly—but Significantly
Referrals are the primary engine of growth for rehab therapy practices, yet inefficiencies in the referral loop directly erode revenue.
- 33% of leaders cite lost revenue from unconverted or incomplete referrals as a top impact of referral leakage
- 40% believe fully viable closed-loop referrals would have the biggest impact on growth in the next 1–2 years
Patients notice, too. Nearly 80% say they are more likely to choose, recommend, and return to clinics that offer a seamless, connected referral experience. Interoperability isn’t just operational infrastructure, it’s a competitive differentiator.
Why “Checking the Box” Isn’t Enough
Regulatory pressure is accelerating interoperability adoption. With rehab therapy now included in MIPS Promoting Interoperability requirements, data exchange is no longer optional.
But compliance alone misses the point.
Many perceived barriers—high integration lift, workflow disruption, or unclear ROI—are rooted more in assumption than reality. In practice, true interoperability often reduces complexity rather than adding to it, especially when it’s API-driven, automated, and embedded directly within clinical systems.
The difference lies in intent:
- Checking the box focuses on document transfer and surface-level connectivity
- Seizing the opportunity means enabling real-time, bi-directional, contextual data flow that closes the referral loop end to end
Closing the Referral Loop: Opportunity Ahead
The data is clear: interoperability is no longer a future-state aspiration for rehab therapy. It’s a present-day lever for faster access to care, better outcomes, lower administrative burden, and sustainable growth.
The perception that “our referrals are fine” is costing the industry time, trust, and revenue.
For therapy leaders willing to look past the status quo, interoperability represents something far more powerful than compliance. It’s a chance to fundamentally improve how care is delivered, experienced, and valued.
And in an increasingly connected healthcare ecosystem, that gap between perception and reality won’t stay hidden for long.