How Much Does a Physical Therapy Clinic Startup Cost?

Thinking about launching your own physical therapy practice, but not sure what it takes financially? You’re not alone. One of the biggest questions future clinic owners ask is: “How much does it cost to open a PT clinic?”

Here are the most common concerns:

• How do I open a healthcare franchise?
• What funding options or financing do I need?
• What’s the investment required to run a successful independent practice?

Starting a clinic can feel overwhelming, but here’s the good news: once you understand the financial landscape, the process becomes much clearer. Knowing what to expect, from startup fees to ongoing costs, is the first step toward turning your vision into reality.

Keep reading for a full breakdown of what opening a physical therapy clinic costs.

Download Free eGuide: How to Fund Your Physical Therapy Practice

Start-up Fees for a Physical Therapy  Clinic

The cost to start a physical therapy clinic can vary widely based on factors like location, size, and specialty services. However, most new clinics share a set of common start-up expenses you’ll want to plan for.

Permit Costs 

Before opening your doors, you’ll need to factor in business permits and licensing fees. These costs vary significantly depending on your state and local regulations.

For example:

• Arizona – Around $50 for a state business license
• Maryland – Approximately $150
• New York – As high as $2,000

Every state (and sometimes each county or city) has its own requirements for business licenses, health permits, or professional registrations. Your state clerk’s office (or local small business authority) can provide the most accurate list of permits you’ll need—and the exact costs.

Don’t forget about renewal fees—many licenses must be updated annually.

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Insurance Costs 

Every physical therapy clinic must carry insurance coverage before opening. The right plans protect you from lawsuits, accidents, and professional risks.

The two most common types are:

• General Liability Insurance
  Covers physical risks (e.g., a patient slips in your clinic).
  Average cost: about $42/month

• Professional Liability Insurance
  (Errors & Omissions) – Protects against claims of negligence, mistakes, or inadequate care.
  Average cost: about $59/month

Factors That Impact Insurance Costs

• Staff size (more employees = higher premiums)
• Clinic size & patient volume
• Insurance provider and coverage limits

Before purchasing a plan, consult with a healthcare attorney. They can help you weigh each policy's advantages, exclusions, and long-term protections.

Equipment Costs 

Your clinic's equipment needs will depend on its size, services, and specialty. Before you buy, define your treatment niche—whether it’s general outpatient PT, sports rehab, balance therapy, or another focus.

Here are some common baseline costs for PT equipment:

• Treatment tables – ~$1,500 each
• Upright bicycles – ~$800
• Treadmills – starting at $1,800
• Heart rate monitors – ~$150

You may even need to purchase several ultrasound muscle stimulators, which sell for around $3,600. 

What to Keep in Mind

• You may need multiple units of certain equipment (e.g., stimulators, monitors).
• Specialty services (like vestibular rehab or pelvic health) can require additional tools.
• Don’t forget to budget for maintenance and replacements over time.

Rent Costs

One of the biggest expenses for a new physical therapy clinic is space. Your costs will vary based on:

• Location – A downtown or high-traffic area will cost significantly more than a suburban or rural site.
• Size of the clinic – Larger spaces mean higher rent and utility bills.
• Type of space – Options include renting, purchasing with a commercial mortgage, or (for very small practices) even operating from home.

Additional Costs to Budget For:

• Utilities – electricity, water, gas, internet
• Maintenance & cleaning fees
• Parking or common area charges (if in a shared building)

While downtown space gives you visibility, suburban locations often provide lower rent with steady patient demand. The best option balances affordability with accessibility for your patients.

FREE ON-DEMAND WEBINAR: How to Start a Physical Therapy Practice 

Software Costs

Technology is no longer optional—it’s essential. While you could manage tasks manually, you’ll quickly run into inefficiencies and compliance risks without the right software. A physical therapy clinic typically needs several types of software to operate smoothly:

1. Electronic Medical Records (EMR)

• Tracks patient progress, stores health data securely, and ensures regulatory compliance.
• Cost: ~$50 to $400 per month
• Bonus: Reduces audit risk and integrates with billing/scheduling.

2. Billing Software

• Options: In-house (software linked to EMR) or outsourced billing.
• In-house software prevents double data entry, while outsourcing can be cost-effective when starting out.

3. Scheduling Software

• Must be HIPAA-compliant to protect patient health information.
• Best if linked directly with your EMR system for seamless workflows.

4. Administrative Tools

• Handles accounting, payroll, and HR functions.
• Popular options include:
  
  • QuickBooks – starts at ~$38/month
  • UltiPro – ~$600 annually for 5 users
  • ADP – ~starts at $119 /month for 10 users

Look for all-in-one platforms that combine EMR, billing, and scheduling. This reduces costs, improves efficiency, and eliminates duplicate data entry.

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Funding Your Physical Therapy Practice

After calculating your start-up costs, the next step is figuring out how to pay for them. Most new clinic owners use a mix of personal funds and financing options. Here are some of the most common:

Popular Funding Options

• Cash or Marketable Securities – Using savings or investments to self-fund.
• 401(k) Rollover for Business Startups (ROBS) – Allows you to invest retirement funds into your business without penalties.
• SBA Loans—These are Government-backed loans designed for small businesses. They often have lower interest rates but require strong credit and paperwork.
• HELOC (Home Equity Line of Credit) – Borrowing against your home equity.
• Partners, Friends & Family – Private investments or shared ownership.
• Commercial Bank Loans – Traditional loans; typically require a strong business plan.

Specialized Financing Options for PT Clinics

• Medical Practice Financing Loans – Tailored specifically for healthcare businesses.
• Equipment Financing Loans – Allows you to spread out the cost of expensive treatment equipment.
• Small Business Administration (SBA) Loans – Popular for startups due to government backing and flexible terms.
• 401(k) Rollovers – A tax-advantaged way to tap into retirement funds.
• HELOCs – Good for those with substantial home equity and strong repayment plans.

If you choose bank financing, be prepared to present a detailed business plan with financial projections, licensing, and compliance documents. The process can take time, but it will set you up for long-term stability.

How Can FYZICAL Help? 

Opening your first physical therapy practice is a huge milestone—but navigating funding, territory selection, and long-term planning can feel overwhelming. That’s where FYZICAL comes in.

We provide guidance on:

• Territory selection and market analysis
• Funding options and financing support
• Franchise opportunities and business models
• Comprehensive franchisee training and support 
• Proven systems for growth and scalability

Visit our website to learn more about starting a physical therapy business, and download our free e-book on securing funding for your clinic.

Still weighing your options? Check out FYZICAL’s Partnership Advantage Program—a unique model that pairs licensed PTs with well-funded entrepreneurs to launch and grow clinics together. It’s an alternative pathway to clinic ownership that reduces risk while maximizing opportunity.

Final Thoughts

Starting a physical therapy clinic is both an exciting opportunity and a serious investment. The costs can feel overwhelming at first, from permits and equipment to rent, staffing, and funding, but with the right plan, the rewards can be substantial.

Whether you’re a licensed PT ready to step into ownership or an entrepreneur looking to enter the healthcare space, understanding the economics is the first step. The next step? Partnering with a proven system that’s already helped hundreds of owners succeed.

Check your territory today to get started!

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FREE FYZICAL Resources For You:
The Investment Opportunity Guide
The Physical Therapy Industry Report
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