Tackling Today's Challenges in the Physical Therapy Industry

REGULATORY CHANGES

Keeping up with regulatory changes is a full-time job! The regulations within physical therapy can change quickly and dramatically. The proposal and suspension of Medicare cuts during 2020 is a prime example, as well as the allowance by CMS to utilize telehealth. If you don’t belong to an organization employing a team on your behalf to sift through the information and propose actionable steps, here are a few suggestions you can implement on your own:

1. Follow Source Publications

CMS, APTA and other governmental agencies like the CDC regularly post updates to regulatory changes. As a private practitioner you must know where to find the information on regulatory changes and take action on them as quickly as possible. Missing a key update could cost your business in the long run

2. Identify Advisors

Top performers in the industry take action only after extensive research and careful consideration. Following their example can save you time – think of it as R and D (Research and Duplication!). Just be certain that you trust Tackling Today’s Challenges the organizations you follow. FYZICAL, WebPT, and others have established themselves as consistent sources of valuable content and have a track record of providing effective advice.

3. Plan Strategically 

Adjustments to your business model may be made necessary by regulatory changes. Changes could affect budgeting, scheduling, billing, marketing, and more. In order to make the proper adjustments, planning should take place as soon as information becomes available, even if the change may not apply for months or years! Effective strategic planning requires comprehensive knowledge of budgeting, financial forecasting, and more.

LOSS OF A ‘KEY EMPLOYEE’

Illness in the family, spousal career changes, and moving are just a few uncontrollable and unpredictable personal reasons a key employee may leave your practice. If you’re in practice long enough, losing a key employee is inevitable. For this reason, it is imperative to plan ahead. Doing this will dramatically enhance your ability to handle the situation effectively. Here are several key strategies to ensure you are well prepared to find new talent:

1. Understand Responsibilities of the Role Being Vacated

A cohesive and clear job description for the open role will be key in recruiting new talent to fill the position. A fully prepared practice owner has a file of up to date job descriptions and responsibilities for every role in the business.

2. Have An Interim Plan

In the interimperiod, before replacement, assign all vacated responsibilities to other team members. If your team is aware of what responsibilities they will need to take over in advance, it prevents feelings of stress and unpreparedness

3. Put Training Protocols in Place

Do you have thorough training protocols in place for each position within your practice Onboarding new talent is easier when you do. A clear process is also attractive to top talent as it reflects an organized business. The training protocols can double as necessary training for those taking on new interim responsibilities.

4. Plan Ahead

You have a plan if you have a clear definition of every position’s responsibilities, the means by which those tasks can be accomplished, and appropriate training. It is imperative that these operations are in place before you have a need for them.

EMERGENCIES, NATURAL DISASTERS, AND PANDEMICS – OH MY!

This one hits close to home right now. Operating a business through an emergency situation that is beyond your control can be taxing. While these situations aren’t preventable, there are things you can do to minimize the negative impact and position your practice to bounce back more quickly.

1. Have an Emergency Plan in Place

You have a plan if you have a clear definition of every position’s responsibilities, the means by which those tasks can be accomplished, and appropriate training. It is imperative that these operations are in place before you have a need for them.

2. Does FORCE MAJEURE Apply? 

This is a common clause in contracts that may free parties of obligation when extraordinary events or circumstances take place. If, as a result of the situation, your business is impacted significantly, you may be able to leverage the ‘Force Majeure’ clause to reduce your financial exposure. This could enable you to find temporary relief from expenses, such as rent and membership dues when you need it most.

3. Have a Communication Plan for Physicians, Patients, and Employees

Clear and effective communication in times of challenge is paramount. Have a plan for how to reach referral sources, customers, and the community at large. Do this ahead of time and assign responsibilities to current positions so all parties know how to respond before an actual event occurs. Your plan should include what channels you will use for communication and the appropriate messaging for each audience. Include this response effort in your training protocols to ensure you are well-positioned in the event of an emergency.

4. Stay Organized. Apply for Assistance ASAP.

Whether an insurance claim, an application for a PPP loan, or some other course of action; the earlier you act, the sooner you will find relief. Many insurance plans and relief programs have deadlines for filing a claim. Familiarize yourself with policies and procedures for seeking assistance. Be sure your practice documentation and files are organized and maintained with up-to-date contact information.

SCHEDULE MAXIMIZATION

Over the last decade, regulatory changes have continued to affect scheduling methodologies and staffing. Unfortunately, most private practices have not adjusted to keep up. When reimbursement is reduced for PTAs, do you have a plan for how you will adjust to account for the decline? When you experience seasonality, is it appropriate to adjust your approach to scheduling? How often should you evaluate your payor mix and the role it plays in your scheduling?

1. Practice Optimization Matrix

At FYZICAL, thousands of hours of industry analysis have helped us to develop an analytical tool that we call the Practice Optimization Matrix (or Practice Optimizer for short). The Practice Optimizer considers your patient flow, facility square footage, staffing, payor mix, reimbursement levels, and current/ pending insurance regulations to provide an optimized solution for scheduling and staffing. The effectiveness of this tool cannot be overlooked. When the global pandemic took hold in the United States, FYZICAL clinics were able to adjust their scheduling to maximize the patient experience while maintaining business value despite the diminished caseload. As the recovery began to take place, clinics were once again able to accommodate for changing volume in the most effective means possible.

2. Initial Evaluation Scheduling

Take some time to go back through your last month and identify new cases that were scheduled to come through and then make a list of those who canceled or no-showed their initial appointment. How many of these patients have been successfully rescheduled and seen? Often, if not successful in rescheduling during the block where they no-showed, or at the very moment they canceled, these patients are never rebooked. Yet, they represent the greatest financial value to your business since they have a complete course of care that remains untreated. Simply training your administrative team on a process for follow up, and managing over it, can be worth tens of thousands of dollars to your practice.

3. Reducing Cancellations

This is one of the most commonly discussed efficiency challenges that PT practice owners face.

• The first step to reducing cancellations is to define what is considered a cancellation, document it, and train your team on the required action steps.
• When a cancellation takes place, reach out to appointments scheduled later in the day and offer the opportunity to come in earlier (which will buy you more time to fill the gaps created later in the schedule.
• Reach out to referrals who have not yet been scheduled (of the most value to the practice) and give them the opportunity to fill a vacated slot. Patients who get in for treatment earlier than expected are typically impressed by your efficiency!
• Call previous cancellations and no-shows, that have not been rescheduled, as an opportunity to fill additional gaps.

All small business owners face challenges, and physical therapy clinics are no exception. How you handle the challenges you face determines your success. Whether you are looking to minimize cancellations, increase patient opportunities, develop emergency procedures, prepare for recruitment, or stay up to date with regulatory changes, we are here to help.