Have you ever considered starting your own physical therapy practice but felt uncertain about where to begin?
Maybe you're:
💡 Curious about how to open a healthcare franchise but don’t know where to start.
💰 Unsure how to fund it—or even how to secure financing.
📊 Wondering about the investment required to successfully manage an independent practice.
Starting a physical therapy practice can feel overwhelming, with cost being one of the biggest hurdles. But, understanding the financial landscape is the first step toward making it happen.
Read on to learn more about the fees involved and how to turn your vision into reality!
Download Free eGuide: How to Fund Your Physical Therapy Practice
A physical therapy clinic's start-up cost will vary depending on various factors, such as location and your area of specialization. Even so, some basic fees are typical for physical therapists seeking to start their practice. These include:
Business permits are part of the start-up costs you'll incur before you get your clinic up and running. The costs vary from state to state. For instance, to get a state business license in Arizona would cost $50, while in Maryland, it costs $150, and in New York $2,000. Your state clerk can advise you on the specific permits you need, how many, and how much they would cost you.
5 Things to Consider When Opening a Cash-Based Physical Therapy Practice
You will also be required to purchase insurance plans such as liability insurance, which covers general and professional liability. These plans can protect you against potential lawsuits. General liability covers physical risks, while professional liability, also known as errors and omissions insurance, covers more abstract risks. The average monthly cost of general insurance is $42, while professional liability is $59. These costs, however, vary depending on:
However, it is a good idea to talk to a healthcare attorney before purchasing a plan to get a clear picture of its advantages and disadvantages.
Before purchasing equipment, it’s essential to determine your planned specialty or treatment niche. Basic equipment can include and cost:
You may even need to purchase several ultrasound muscle stimulators, which sell for around $3,600.
The costs you'll incur on space depend on its size and location. You have the option to rent, get a commercial mortgage or function from home. When choosing your practice site, location can affect rental costs, and a downtown location will cost more than one outside the city. Keep in mind there are often additional fees associated with rent, such as electricity and water.
FREE ON-DEMAND WEBINAR: How to Start a Physical Therapy Practice
Technology is evolving, and as much as you can do some of your work manually, it might end up derailing you in the long run. For this reason, you will need various software to perform different tasks such as billing, scheduling, accounting, and administrative duties. Some of the software you'll need to operate your clinic includes:
EMR systems assist you in tracking and documenting patient progress while ensuring compliance with all necessary regulatory requirements, protecting you from further audits. An EMR system can run anywhere from $49 to $200 per month.
When it comes to billing, you can outsource billing or manage it internally. If you decide to do so internally, invest in billing software linked with your EMR to avoid double data entry. Outsourcing can be an option to cut costs when starting your practice.
All patients' information is considered Protected Health Information. For this reason, you'll need scheduling software that is HIPAA compliant to schedule your patients. It would be best to use scheduling software that links with your EMR.
You'll also need software that assists in other administrative tasks, such as accounting and HR management. Such software is QuickBooks, whose monthly costs start from $7; UltiPro, whose annual price for five users is $600; or ADP, which costs $160 for ten users monthly.
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Once you’ve determined the starting costs for your physical therapy practice, you’ll want to decide which funding options are suitable for you. There are several different methods from which you can choose:
If you decide to secure funding through a bank, it's important to note that you will be required to create a good business plan that includes paperwork. The process might be tiresome and take longer than expected to open your practice.
Some of the options you can consider are:
Opening your first physical therapy practice can be a significant milestone for a physical therapist ready to take the first step toward becoming a practice owner. However, trying to navigate the funding options and plan for success can often feel tricky. FYZICAL can help guide you every step of the way and advise you on everything you need to know about opening a practice, territory selection, funding, franchising opportunities, and more.
Visit our website to learn more about starting a physical therapy business, and download our free e-book to learn more about securing funding and the available funding options available.
Still need more answers? Build an alternative pathway to clinic ownership with FYZICAL's Partnership Advantage Program, where we match licensed PTs with well-funded entrepreneurs to build and grow FYZICAL clinics together!
Related Blog: How to Choose a Location for Your Physical Therapy Clinic Startup
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FREE FYZICAL Resources For You:
The Investment Opportunity Guide
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