“Give your patient twenty dollars and let them go home so they can at least have a cup of coffee while losing money,” is what Chuck Felder of HCS Consulting suggested in his speech at the Conference of the Private Practice Section of the American Physical Therapy Association. in San Diego in the fall of 2007. He went on to explain that with the average cost of a PT visit of $ 81, accepting an insurance contract that pays less can be disastrous.
How the physical therapy clinics are doing:
Of the physical therapy clinics surveyed in their study, they ran from a loss of 30% to a gain of 38% with an average gain of 12%.
What physical therapy clinics charge:
In the clinics studied, charge amounts ranged from $ 75 per visit to a maximum of $ 160 per visit. The average charge was set at $ 137 / visit, although the average income per visit was only $ 91 / visit. If that sounds good to you, remember that the average cost per visit was $ 81. Chuck says that if you charge 125-150% of Medicare fees, you can expect a 30% cancellation. He also stated that the average accounts receivable from a standard physical therapy clinic is 200% of the monthly charge. Alison Palic, PT, contributor to the Cash Practice Secrets home study course, stated that she charges $ 95 in cash for a 50 minute session and has no accounts receivable.
APTA Private Practice Chair Steve Andersen, PT notes that reimbursement rates appear to be declining “beyond our control.”
Chuck stated that cash-based physical therapy was an area we want to grow in because there is a much greater hassle factor when trying to get paid after the fact.
Chuck showed a photo of his son firing a black powder rifle, but used it to illustrate a good point. He said: “Aim right at what you want to do and you will hit the mark.”
Written by Lance Van Arsdell