Healthcare industry business strategy is at a crossroads. More than ever, driving revenue is front and center in discussions among hospital and health system executives. Too often, however, those discussions turn toward patient acquisition. While patient acquisition has its place, marketing efforts that focus on patient retention present equally important opportunities to drive revenue.
The basic reason is simple: at some point, every healthcare provider reaches a limit on how many new patients they can acquire. Patients who stay actively engaged with their provider — regularly monitoring any recurring conditions, going in for scans and tests when appropriate, etc. — are likely to stay in one place. Those who do not are more likely to change providers, or use urgent cares and emergency rooms when issues arise. In the long run, it’s better to focus on the leaky sieve of patients leaving than the net number of new members.
A closer look at the cost of retention vs. acquisition reveals layers of complexity to the problem of patient attrition — and the wisdom behind a proactive approach. Consumers are generally happy to hear from a brand when their message is timely, useful, and reflects an understanding of who they are and what they need most. With the proper HIPAA guardrails in place, healthcare marketers can leverage this to their advantage.
Proactive communication
Traditionally a patient arrives for their annual check-up, receives care, and heads home. Providers and patients engage in little dialogue between appointments. (The patient might be just as unlikely to initiate that dialogue as the provider.) Compared to the retail world, it’s a 180-degree difference. Finding the optimal timing of communications is a science many retail brands have perfected.
Translating this approach to healthcare, a marketer might begin with a question: “what might keep this patient well, and keep them from needing additional care, given their age, gender, and other factors?” Facilitating and nurturing that conversation in a way that’s supportive, rather than reactive, can go a long way toward retaining the patient. Patients who feel known and supported are more likely to adhere to their treatment plans, communicate their concerns earlier, trust clinical guidance, and participate in shared decision-making.
Conversely, dissatisfied patients rarely announce their dissatisfaction. Most patient loss happens long before someone “quiet-quits” their healthcare provider. Loyalty gaps tend to surface at predictable moments:
- Difficulty scheduling appointments, confusing intake or insurance processes, or poor first impressions with staff or digital tools can sow disappointment early in the patient journey.
- Once they’re in the clinical setting, a patient might feel rushed or unheard, feel their experience doesn’t line up with expectations, or lack clarity on what to do after leaving.
- Between visits, a patient might grow disillusioned with no follow-up, education or reassurance from their clinical team; or simply feel “lost” on their own while waiting for communication.
- Administrative headaches — billing surprises, delays in results, care transitions or referrals — can also cause friction.
These aren’t just provider issues. They’re brand experiences that provide a basis for why marketing should play a role in the patient care journey. When executed well, these moments can foster loyalty, and possibly referrals as well.
The dollars and cents of retention
Retention protects the most expensive investment: acquired trust. Acquiring a patient isn’t just a marketing cost; it’s the cost of awareness, access, scheduling, and clinical and administrative onboarding. When a patient leaves, the organization doesn’t just lose future revenue. It writes off the sunk cost of trust-building that already occurred. Retention preserves that investment.
The economics favor retention. While healthcare isn’t retail, the dynamics still apply. Returning patients are more likely to schedule follow-up care, complete recommended services, and stay within the system for referrals and ancillary care. Retention improves lifetime value per patient, even without increased visit frequency. In contrast, acquisition costs continue to rise due to digital ad competition, physician shortages, and consumer expectations for convenience and responsiveness.
Attrition creates hidden downstream leakage. When patients disengage, preventive care is missed, chronic conditions worsen, care shifts to higher-cost settings such as the emergency department and urgent care, and patients fragment across systems, reducing continuity. This hurts quality metrics, value-based reimbursement, and risk-adjusted performance. Retention isn’t only a growth lever; it’s a clinical and financial stabilizer.
HIPAA and marketing communication
Historically in the healthcare industry, the focal point for interacting with patients began with clinical staff. It’s easy to pin a patient’s brand loyalty — or the lack thereof — to the quality of their interactions with clinicians. While the doctor’s office might be ground zero, it’s important that the mission of patient retention doesn’t end there. The cost of retaining each patient shouldn’t be an afterthought for a CFO or CMO.
Marketers possess all the data they need to send patients useful, personalized content at timely intervals. For providers, that can be a useful tool in helping to keep patients healthy; for CFOs and CMOs, it’s a necessary part of retention. To “see” patients at each point in their journey, and surround them with an experience that aligns with the brand’s overall message, can facilitate interactions that — importantly for regulators — do not incur a HIPAA infraction. A hospital or health system CMO focused on patient retention can design a campaign that is both useful and HIPAA-compliant without being generic.
A provider that works hard to earn a patient’s business, then treats them like a stranger until opening their MyChart record, is at high risk of attrition. A MyChart record isn’t a marketing tool, but the industry struggles with what to do with all that information — or is bound to traditional conventions.
The most resilient healthcare organizations don’t choose between acquisition and retention. A sustained, winning patient strategy is rooted in both.
New patient acquisition fuels growth once. Retention fuels growth repeatedly — while protecting quality, margins, and trust.
Photo: exdez, Getty Images
Jordan Buning is President of ddm marketing + communications, a leading marketing agency for highly complex and highly regulated industries. Throughout Jordan’s 28 years in marketing, he has served clients among a diverse range of industries, including healthcare, financial services and global manufacturing as well as public transportation, higher education, recreational products.
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