How To Open A Physical Therapy Practice – 1 White Paper on How to Start a Physical Therapy Clinic by Jerry Henderson, P.O. Many enjoy the freedom and independence that comes with owning a clinic. Others enjoy the challenge of running a busy clinic. Of course, there is always the possibility of getting a nice financial reward. It’s easy to imagine yourself as a clinic owner. It’s harder to make a dream come true. This guide will show you how to build success in your clinic from the ground up. Research the potential success of your clinic before investing in it. The biggest mistake you can make is to rush with an idea without doing the necessary research. There are four Cs you should know before opening your clinic. They are: customers, competition, compensation and costs. 1) Customers It is important to know how many potential customers there are in your area. By determining the size of your market, you’ll have a good idea of whether you’ll be able to fill your appointment book. This is especially important for rural areas or if you have a very specific goal for your clinic. You should be able to answer the questions: How many people live in your area? How many will seek the care you offer? You should also research referral sources. This is easier to find out if you have already practiced in the area where you would like to open your clinic. You should know: How many doctors in your area refer patients for your specialty? To what extent would a referral source recommend a patient travel to receive care provided by your practice? Also, ask yourself if you’re the type of person who feels comfortable turning to referral sources you don’t know. Where to find customer information: The Internet is a great source for customer demographics. Demographic websites such as infousa.com and US Census, census.gov, will provide you with important data about your area. Your local library may also have access to demographic databases with more specific information, such as family age and income.
2 2) Competition Living in a well-populated area can be an advantage for a new physical therapy practice. However, you will also find more competition in urban areas. Evaluating your competition is a key part of your research process. You should know: How many physiotherapy clinics are there in your area? Do you practice a particular specialty that is underrepresented? One issue that concerns physiotherapists is insurance panels. It is much easier to acquire and retain patients if you are part of their insurance plans. In the interest of keeping costs low, insurance companies limit the number of therapists allowed on each panel. Your potential for successful inclusion on insurance panels is directly related to the amount of competition in your field. Don’t get your heart broken by investing in a clinic only to find out you can’t get on the insurance panels in your area. Important Information: What are the steps to becoming the preferred service provider for payers in your area? How difficult will it be to become a preferred supplier? Are insurance panels already saturated for your specialty? Where to find this information: Networking with other physical therapists in your area is key. If you have not become a member of the Private Practice Section (PPS) of the American Physical Therapy Association, now is a good time to do so. Membership allows you to attend local chapter meetings. The APTA PPS Member Program also connects you with experienced private professionals across the country. 3) Compensation Compensation rates vary across the country. Your expectations must align with the real-life compensation you will receive as the owner of your own clinic. You should know: How much should you expect to be paid per visit? How much will you have to write off due to denials and missed payments to payers and patients? Where to find this information: Athena Health’s PayerView provides a comprehensive overview of major payers across the country. You can also request information from the payers you intend to bill. Of course, friends and mentors in the physical therapy industry are good resources. 4) Cost The number one question every therapist has is how much will it cost? I’ve talked to therapists who have spent up to $100,000 and up to $500,000 to open a clinic. Real estate and salaries are the two largest costs you will encounter in your clinic, and both vary greatly from region to region. You need to calculate the costs of your facility, your clinic equipment, your employee salaries and your marketing. Where to find this information: While some of this information is available online, it’s also a good idea to talk to local real estate agents. If you live in an urban or suburban area, you may be able to find someone who specializes in healthcare properties. Your contacts through PPS APTA may also be able to provide you with some quotes. After the Research Now that you’ve done your research, it’s time to really think about your potential for success. Are there enough potential customers? How much competition is there? Is the compensation sufficient? Are the costs low enough? How many customers will you need to see each day to make a profit? 2
How To Open A Physical Therapy Practice
3 It’s a good idea to develop a spreadsheet that lists your initial investment, ongoing expenses, and profit forecasts for the next fiscal year. Choose Your Market, Define Your Clinic Often, clinic owners try to serve everyone and are unable to focus their message or expertise on a specific market. Choosing a specific customer market and defining your clinic based on the needs of that market is an important step because it will focus your marketing message and your efforts on meeting the needs of that market. Develop a Business Plan Once you’ve done your research, chosen your market, and defined your clinic, you’re ready to write your business plan. Developing a business plan will help you: define your goals; develop strategies to achieve these objectives; decide the best way to use your human and financial resources; communicate your plan to employees, colleagues and potential supporters; and monitor the results of your efforts and adjust your plans and work practices as needed. Plus, with a good business plan, you have a good advantage if you decide to expand your business. The Small Business Administration has excellent resources for developing a business plan. Check out their website at Think about how you will run your clinic on a daily basis. Clinic workflow describes the movement of tasks and data through the workflow. The workflow describes the actual tasks, who performs them and in what order, how information is organized to support the tasks, and how the tasks are monitored. Draw a basic workflow diagram, thinking about the information you need to capture at each step, from appointment to treatment to billing. Include this information in your business plan. As you plan your business, you will need to forecast your profitability. Plan for cash flow downturn. Most clinics report an initial period of 3 to 6 months before they have cash on hand to pay bills as they arrive. Engage the Experts As you develop your business plan, you should start working with professionals to help you make your business work. It is all too common for an entrepreneur not to invest in the skills of others. You are an expert in physical therapy. Stay focused on the physiotherapy aspects of your business. It is very difficult to manage accounting, billing and marketing and still have time to run the clinic and see patients. Hiring experts to help you is money well spent. Financial Experts If you don’t have money to invest, you will need to secure financing. Ask some successful businessmen to recommend you a good banker. In addition to a banker, you will also need to find a lawyer and an accountant. Two useful financial investments are accounting software and a safe deposit box. Using an Internet-based accounting software package will allow you to securely access your financial information anywhere, anytime. A locked mailbox is a mailbox linked to a deposit account. Postal checks and Explanation of Benefits Payer (EOB) forms are up for grabs. Checks are automatically deposited into your account. Bank personnel scan checks and EOBs and provide an online representation of the scanned copies to billing personnel or collections.
Assessing Cardiovascular Parameters And Risk Factors In Physical Therapy Practice Faletra Et Al 2022
Owning a physical therapy practice, how to open a physical therapy practice, how to start a physical therapy practice, physical therapy private practice, physical therapy practice management software, how to open a physical therapy clinic, how to open your own physical therapy practice, how to value a physical therapy practice, opening your own physical therapy practice, physical therapy practice management, starting a physical therapy practice, guide to physical therapy practice