PT Clinic Financials Broken? The Fix May Be Easier Than You Think…
Are you writing off 25% each year, working overtime, and just meeting expenses? If that sounds like a tough way to make a living, we would like you to meet Mike Walsh, PT and the BESTPT Center For Excellence.
By David Steinberg, Senior Consultant, PTreferralMachine.com and Mike Walsh, PT, Practice Owner
Let’s face it, most independent physical therapists provide excellent care and love what they do, but when it comes to running a business, the administrative work, and P&L responsibility, not so much.
Today we want to introduce you to Mike Walsh, PT. Mike has been there, done that, fixed that, and we have been fortunate enough to have front row seats. The story is not special, but rather typical; common industry problems that owner managers either tackle with success or live with. What is unusual is that Mike not only meet his practice challenges with success, but saw the opportunity to apply that experience in other practices and get the same results consistently.
Mike’s passion is helping you spend more time treating your patients and growing your business at the same time. If this case study helps you appreciate the opportunity for your practice, contact Mike or Thomas Jorno at the BESTPT Excellence Center to learn more.
We chose this case study because it shows typical numbers “before” and “after” the fix and see how moderate improvements across all operational aspects translates to a huge improvement in profitability.
Clinic Financials – Before & After
Moderate improvements across all operational aspects results in a huge profitability improvement.
Enjoy! We invite your comments.
Case Study: Physical Therapy Services (PTS), Delaware
Background: Prior to engaging with Mike Walsh, PTS average annual collections were approximately $750,000 with three full-time therapists. The workload required a 60 hour weekly office schedule, which created staffing and overtime issues, stress, and poor morale.
Mike Walsh, PT at PTS
Key Before & After Stats at PTS
Increasing profitability allows us to strike a balance between work and personal time for our staff. This increase in efficiency allows employees, both clinical and administrative to work smarter, not harder – weekly working hours were reduced from 60 to 40.
Using bestPT billing services is saving me over $100,000 a year!
Working hours, visits, & expenses
One of the former owners reported that he was re-energized and happy just seeing patients. Another former owner mentioned that he ‘hadn’t spoken to an insurance company in 1 year and wanted to make sure everything was okay — he use to speak to insurance reps 6-8 times a day!” They love the fact that Vericle makes their lives easier.
Improved staff morale also improved patient satisfaction and referrals (referrals grew 16%)
Pay per Visit grew by 41% from $69.44 to $97.83, by simply billing correctly, eliminating unreasonable “preferred provider discount contracts” and proper follow-through.
Better patient satisfaction and proper billing drove up revenue
Increasing revenues and reducing expenses and improving efficiency grew profitability more than 5 times from mere 8% to 45%.
Increased revenue and reduced cost resulting amazing profitability growth
Mike Walsh Engagement Results – Clinic Owner’s Summary:
“I am at the point where my practice manager is able to run the practice. I still treat patients each week and it even allows me to take a vacation in the Caribbean as long as I’ve got WiFi and google chrome so I can access Vericle!”
“I tell people all the time, ‘I love seeing patients — its something I enjoy! But running a business and making it as high quality and effective is my MATH…understanding changes in insurance payments and the authorization process is my MATH…looking for the next referral source and building solid referral relationships is my MATH. Yes I am a PT but I’m also a businessman.”
