May 7, 2026 | Brandon Hastings
9 min read
For years, rehab therapy has often operated on a digital island. While the hospital down the street and the primary care clinic across town might be connected through modern tech, the physical therapist in a specialized clinic is frequently left waiting for a faxed surgical report or forced to manually re-enter a patient’s medical history. This is a significant operational drain that impacts the bottom line, and that’s what interoperability in healthcare is all about.
Thus, the need for interoperability in healthcare: the seamless exchange and use of data across different health systems and organizations.
Just take the efficiency gap: According to the Office of the Assistant Secretary for Technology Policy (ASTP), while nearly all (92%) hospitals send patient health information electronically, only 70% engage in all four domains of interoperability—namely sending, receiving, finding, and integrating electronic health information for decision-making.
For clinic directors and hospital administrators, this gap represents lost billable time, increased administrative overhead, and a higher risk of medical errors during transitions of care.
As the industry shifts toward value-based care, the ability to track a patient’s progress across healthcare settings and providers—from an acute event through long-term rehabilitation—becomes paramount to promoting clinical excellence and financial sustainability.
This guide will help you understand interoperability in healthcare, particularly the rehab setting, so you can use it to optimize both your operations and patient outcomes. Though this information is geared toward those in the rehab space, it can apply to any decision-makers in healthcare operations.
What Is Interoperability in Healthcare?
To effectively manage a clinic, you need to view interoperability as more than just sharing files. According to the Healthcare Information and Management Systems Society (HIMSS), interoperability is the ability of different information systems, devices, and applications to access, exchange, integrate, and cooperatively use data in a coordinated manner.
For the rehab world, this means a physical therapist’s electronic health record (EHR) doesn’t just receive a referral; it interprets the specific post-operative protocols sent by the referring provider (such as an orthopedic surgeon).
To understand how this works in practice, let’s review the four established levels of interoperability.

Level 1: Foundational Interoperability
Foundational interoperability is the most basic level that establishes the pipe through which data flows. One system sends data to another, but the receiving system doesn’t necessarily need to interpret the data—it just needs to receive it securely.
Think about it like your email service receiving an email attachment, as it doesn’t need to assess whether the attachment is a Word document or PDF to do so.
Level 2: Structural Interoperability
This level defines the syntax, or format, of the data exchange. Structural interoperability uses standards like HL7 (which we’ll cover shortly), structural interoperability ensures that data fields are organized so that the receiving system knows exactly where to find, say, the patient’s birthdate versus their primary diagnosis.
Level 3: Semantic Interoperability
Semantic interoperability is the goal for high-performing clinics. It ensures that both systems speak the same clinical vocabulary.
For example, if an acute care hospital records a “cerebrovascular accident” using a specific SNOMED CT code, the rehab EHR recognizes it instantly, including all associated clinical nuances, without the therapist having to manually translate the record.
Level 4: Organizational Interoperability
Organizational interoperability involves the non-technical side of clinic operations, aligning aspects such as governance, policy, and workflow within and between organizations, entities, and individuals. It ensures that when, for example, a patient is referred to rehab, data sharing happens automatically and securely as a standard part of the clinical pathway.
In a rehab context, moving through these levels means transitioning from fax and scan workflows to discrete data that is broken down into specific, individual data points that a computer can search, sort, and analyze. So, instead of a physical therapist (PT) or admin staff reading and transcribing a grainy image of a script, the referral data populates the evaluation fields in the EHR automatically.
Information Exchange Standards of Interoperability in Healthcare
While we recognize you’re not a software developer, understanding a bit of the technical how of interoperability helps when making informed purchasing and partnership decisions.
At a minimum, it’s important to know that there are several primary standards that address message format, patient data linkage, and other aspects of information exchange that enable smaller or specialized clinic EHRs to communicate with those at larger hospital systems.
HL7 V2
For decades, Health Level Seven version 2 (HL7 V2) has been the primary standard for hospital data exchange. Most legacy hospital-to-clinic interfaces still rely on it. HL7 is effective for “pushing” data, such as sending a lab result or an ADT (admission, discharge, transfer) message. However, it can be rigid and often requires expensive, custom-built interfaces for every new connection.
FHIR
Fast Healthcare Interoperability Resources (FHIR) is the modern evolution of standards from HL7. FHIR depends on the basic building block of a resource, which is any piece of exchangeable health content.
FHIR works the same way modern websites like Amazon or Google share data. Just as Amazon allows a third-party app to request your specific order status or Google allows a travel site to request your flight times from your calendar, FHIR allows rehab EHRs to request or “pull” specific pieces of discrete data (e.g., “give me the last three surgical notes for Patient X”) rather than sending a massive, unorganized document a human would need to manually decipher.
APIs
Application programming interfaces (APIs) are the digital bridges connecting disparate parts of the healthcare ecosystem. They allow a rehab software platform to plug into various data silos, including hospital EHRs (like Epic or Cerner), diagnostic laboratories, and pharmacy systems. You can then use software built specifically for the unique needs of your rehab clinic while maintaining a live, real-time link to the hospital’s patient records.
Why Does Interoperability in Healthcare Matter for Rehab Operations?
As an operations leader, your primary goal is often balancing clinical excellence with fiscal responsibility. Interoperability directly fuels both by transforming how information moves through your facility.
Smoother Transitions of Care
The information handoff is often the weakest link when a patient moves from acute care to outpatient rehab. Interoperability provides instant access to surgical notes, weight-bearing precautions, and imaging results. This can significantly reduce the time spent on initial evaluations, helping therapists begin active treatment sooner and improving overall clinic throughput.
Reduced Administrative Burden
Manual data entry is a significant drain on profitability. When scripts and referrals arrive as discrete data instead of full documents, your front-office staff stops “chart chasing” via phone and fax. Automating the intake process via interoperable links can reduce administrative overhead and lower the risk of data entry errors that lead to claim denials.
Enhanced Clinical Decision Support
Interoperable systems reduce the replication of services (like imaging) and improve communication to reduce health care errors. They also provide broader access to a patient’s medical history, enabling your EHR to proactively flag potential contraindications.
For example, if a patient’s medication list from their primary care physician is integrated into your system, the software can alert the PT to cardiovascular risks before the first session begins.
Improved Patient Experience
Patients often find it frustrating to repeat their medical history to every new provider. Interoperability supports a “tell your story once” model. When a PT walks into the room already briefed on the patient’s recent surgery and hospital stay, immediatly trust and patient engagement improve.
Ultimately, these efficiencies empower clinical staff to focus more on patient care rather than administrative tasks.
How Do We Improve Interoperability in Healthcare?
Realistically, improving interoperability is a measured progression toward a more connected clinical environment. As an administrator, you can take several concrete steps to bridge the gaps in your current data workflows.
Audit Your Current Tech Stack
Begin by identifying information blockers within your clinic. Look for legacy systems or local servers that lack API capabilities or only support outdated, non-discrete data formats. Understanding where your data hits a dead end is the first step toward a solution.
Prioritize ONC-Certified Vendors
The 21st Century Cures Act prohibits information blocking and mandates the use of APIs that use modern standards (like FHIR). When evaluating an EHR, verifying that the vendor is certified by the Office of the National Coordinator (ONC) can be a useful criterion for shortlisting solutions. This certification guarantees that the software meets federal requirements for secure, standardized data sharing.
Adopt Standardized Clinical Terminologies
To achieve semantic interoperability, your clinic must speak the same language as the rest of the healthcare system. Ensure your documentation practices use standardized codes like SNOMED CT for clinical findings and LOINC for laboratory results. This ensures that your rehab outcomes and progress notes are immediately understood by a patient’s primary care physician or surgeon.
Leverage Health Information Exchanges (HIEs)
Many regions operate HIEs that act as a central hub for medical records. By joining a regional HIE, you can gain instant, secure access to a massive network of hospital records and diagnostic data, without needing to build individual interfaces for every referring provider.
Invest in a Culture of Data Sharing
Interoperability is a clinical culture as much as it is a technical standard. Train staff to recognize the value of discrete data and encourage them to move away from fax and scan workarounds. When clinical teams understand how a connected chart improves patient safety and reduces their administrative burden, they naturally become advocates for better data integration.
rehab therapy ehr
See How a Rehab Therapy EHR Can Integrate with Hospital Systems
Common Questions about Interoperability in Healthcare for Clinic Leaders
Clinic leaders often face internal concerns when transitioning to interoperable systems. Addressing these frequently asked questions can help you secure organizational buy-in.
Is Our Data Safe During Exchange?
Modern interoperability relies on encrypted API protocols and OAuth 2.0 authentication. These standards ensure that data is only accessible to authorized providers, often exceeding the security of traditional fax or unencrypted email exchanges.
Will This Increase the Documentation Burden for Physical Therapists?
On the contrary, interoperability reduces the after-hours documentation burden by automating manual data entry. When clinical data flows directly into the EHR, PTs spend less time hunting for patient history and more time on active treatment, helping to mitigate administrative burnout.
What Is the Real-World ROI of Interoperability in Healthcare?
Investing in connectivity reduces denied claims through more accurate documentation and speeds up the intake cycle. By eliminating manual referral workarounds, clinics can significantly lower administrative overhead while increasing patient throughput.
How Do We Handle Information Blocking from Larger Systems?
The 21st Century Cures Act makes information blocking illegal. If a larger system or vendor refuses to share data, you have regulatory standing to request access.
Still, choosing a vendor that actively participates in nationwide trust frameworks (like Carequality or CommonWell) provides the necessary leverage to maintain the flow of health data between hospital systems and referral sources.
Strengthening Your Clinic’s Digital Infrastructure with Interoperability in Healthcare
Interoperability is a competitive necessity for the modern rehab clinic, as well as other healthcare facilities. Moving away from digital silos ensures your clinic can recapture lost administrative time, improve clinical outcomes, and secure your place in the value-based care landscape.


