If you are thinking about opening up your very own private practice, it can be very exciting… but perhaps a bit intimidating too! There are many steps you need to take to start your physical therapy business. By reading this post, you will gain some insight into the first steps in the process.
WEBINAR: How to Start a Physical Therapy Practice
Starting a business takes many skills. Although you are an expert in your craft, a master at healing with your hands, do you also have expertise in marketing? How about accounting? Recruitment? Training? Business management?
You most likely answered no to at least a couple of these aspects. However, you NEED all of these things in order to operate a successful, flourishing business.
This leads us to the first step in starting a physical therapy business:
Solo or Partners
Two heads are better than one, sometimes. According to the APTA, there are proven benefits to bringing in another partner or group. Partners may provide what you may be missing, like money, adjacent thinking/experience, etc.
However, there are also benefits to going at it alone. You will have the freedom to make all the decisions and do things the way YOU want to. You also don’t have to share the profits you generate. Just keep in mind, there is a greater risk when you own a business alone. If you have gaps in your business where your expertise is lacking this will hurt your business. You will also have to deal with any debt and administrative burden.
Looking for an ownership stake in a practice but don't have the resources? Learn all about FYZICAL's Partnership Advantage Program!
Cash-Based or Insurance-Based
As reimbursement rates continue to decrease and the cost of staying in business increases, many PT practices are switching to cash-based physical therapy services.
There is a lot of paperwork and hassle associated with insurance reimbursements, so you may think it would be easier for you to go to cash-based. However, there are patients who are not willing or able to pay out of pocket for physical therapy services.
You will need to consider your community demographics and assess their needs. Are there a lot of cash-based healthcare services in your area? How are they performing?
If most of the people in your community have insurance and are looking for practices that accept their providers, you don’t want to only offer cash-based services because you will lose out on a lot of patients who rely on their insurance for physical therapy. In some cases, Medicare patients are not legally allowed to put up their own money for therapy services that Medicare covers.
Determine Your Location
Location can make or break your business. Do your research before you put an offer on a space!
According to WebPT, you need to ask yourself the following questions before determining the location for your PT practice:
- What direct access services can you legally provide in your state?
- What are the tax implications and fees for small businesses in your state, city, and county?
- How many people live or work in the community? Realistically, how many of them will seek out your care?
- How many referral providers work in the area? How many of them routinely prescribe physical therapy?
- How many other physical therapy providers are there in the community? Is the area already saturated, or can you identify a gap in services that you can fill?
- How do you become a preferred provider for payers in your area? Will it be difficult?
- What is the typical reimbursement rate for providers in your area? What should you expect to write off as a result of denied reimbursements or failure to collect?
- Is your building easily accessible by foot, car, or public transportation? Will signage be visible from nearby streets?
Think about the space you want and need. If you want to grow in the future, you may want to start with a bigger space than you need at first so you can grow into it. Also, if you have any specializations that require additional equipment, think about those necessities.
There is so much more to starting a physical therapy business (choosing software, purchasing equipment, hiring, etc.). It is normal to feel nervous or even overwhelmed at the thought of it. But it is also exciting! This is a big deal and something that can change your life and your patients’ lives forever. It is important to put a lot of thought and effort into it before you get started!
Luckily, there are a lot of resources out in the world to help you through the start-up process. Many experts who have been through all the ups and downs of opening a PT practice have compiled all their knowledge so that future private practice owners like you have it easy!
If you are thinking about opening up your very own private practice, we’ve assembled 5 resources that make opening a private practice easy!
FYZICAL's Resource Page: Webinars, eGuides, Blogs, and more!
Other Resources You May Like:
FREE eGUIDES:
Funding Your Physical Therapy Practice Guide
What to Know Before You Start Your PT Private Practice
Location Selection for Your PT Private Practice
14 Ways to Generate More Referrals to Your PT Private Practice
The Physical Therapy Industry Report
FREE On-Demand Webinars:
How to Start a Physical Therapy Practice
Healthcare Franchising 101
