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How does your physical therapy practice compare? | Performance Benchmarking

By Dr. Eldad De-Medonsa, PhD and Dr. Yuval Lirov, PhD 

physical-therapy-billing_performance-benchmarkingOn average, bestPT customers outperform industry profitability standards by a factor of two. In other words, the average physical therapy practice using bestPT solution generates twice as much cash-flow as her peers. The surprising aspect of this comparison is the cumulative effect of relatively small differences across several metrics that generates a dramatic improvement to the bottom line. For the comparison below, we used data stored in bestPT’s system vs. industry data resources available publicly and privately.

BestPT customers’ average number of annual visits per patient is 11.6, which is better than the physical therapy industry norm of 10.6 by nine percent. A better than average patient loyalty is often the result of superior physical therapy treatment quality and patient education.

bestPT customers’ performance

Industry norm

Ratio

Annual Patient Visits

11.6

10.6

109%

BestPT customers’ cash flow is above the industry norm. Better cash flow is usually the result of better Pay Per Visit (PPV) and better physical therapy billing performance. So bestPT customers are not only getting more money for their work – they are also getting it faster.

bestPT customers’ performance

Industry norm

Ratio

Pay Per Visit

$94.27

$89.78

105%

Average A/R > 120 days

10%

21%

48%

On top of achieving better results for their patients, bestPT customers also achieve better results for themselves, projecting more than $700,000 net additional income over the next 10 years when treating 500 physical therapy patients per annum.

bestPT customers’ performance

Industry norm

Ratio

Income per new patient

$1,094

$953

115%

Patients per annum

500

500

Income per annum

$546,766

$476,500

10 years income

$5,467,660

$4,765,000

Since all this additional income is generated after bestPT customers have already paid their expenses and physical therapy billing fees, it is pure profit – resulting in more than double the industry norm for physical therapy profitability:

bestPT customers’ performance

Industry norm

Ratio

10 years profit

$1,179,160

$476,500

247%

Profitability

22%

10%

Next steps:

  • If you are not using bestPT physical therapy software yet and want to see your own practice performance comparison, schedule your Initial Practice Evaluation here.

  • If you are already using bestPT physical therapy software and want to see your own practice performance, open a ticket to your SPOC.  For a SMART Plan, request a full-scope Radar analysis of your practice.

Physical Therapy Patient Care | Are You Ready for the Overwhelming Impact of our Aging Patient Population?

Physical Therapy Patient Care for Baby Boomers

By Thomas Champine

At the start of the new millennium 12.4 percent of the population in the United States was 65+. By 2030 that number is expected to rise to 19.6 percent, an increase of over 35 million people. The baby boomer generation, people born roughly between 1946 and 1964, is the largest generation in America. This group is better educated and will expect better physical therapy patient care from our healthcare system, including your physical therapy practice.

These facts bring three questions to mind:

  1. What are some of the anticipated results of these two facts? 
  2. Are you ready for a massive demographics shift at your physical therapy practice?
  3. Can your current physical therapy practice management program handle an increase in scheduling, records, and claim processing?
There are many more questions that come to mind, however, these first three will have a dramatic effect on your ability to stay profitable in tomorrow’s healthcare industry. We will explore these concerns, and any others that are brought to our attention, to help your physical therapy practice be prepared for the changes ahead.

What are some of the anticipated results of these two facts?

As a physical therapy practice management service, we keep ourselves close to the healthcare industry “pulse” so we can adapt prior to changes coming into your workplace.  One of the biggest challenges we see in the near future is the massive demographic shift that will occur in the next 15 to 20 years.  A highly educated, highly informed, aging population will be walking through your doors in rapidly increasing numbers. This patient group will demand more of you and your staff, better results of treatment, quicker than ever before. The effect this will have will be industry changing and could result in a number of effects.One result is that we will need an influx of professionally trained personnel, of all specialties, to meet the demand. For current practices to stay away from patient saturation the marketplace needs more PTs, OTs, SLPs and various highly trained support staff. Next, new practices/facilities will need to open to provide the physical treatment spaces for the influx of patients.


The fact that these patient are more educated and connected to education resources, sometimes appropriate and other-times detrimental (*as a former EMT/Firefighter, nothing was worse then hearing the phrase “I went on the internet and…”), means that the patient will expect better and quicker results from treatment.  Our ability to properly educate about, establish and maintain realistic patient goals will be heavily tested in the coming years.



This shift will also put a major strain on your payment structure for services.  All major insurance payers, specifically CMS, will see a sympathetic increase in claims submission based on the increase in patient services provided by you.  This inundation will increase the pressure CMS is receiving from its’ oversight committee, which will increase CMS’ likelihood of denial.



This is just a short list of the possible anticipated results of this known patient population shift.  Are you ready  for a massive demographics shift at your physical therapy practice? Do you have the tools necessary to continue an increasingly intense fight with payers to continue to operate your practice? Have you selected a physical therapy practice management tool that can adapt as quickly as you need to stay current with industry trends?…..

Physical Therapy Profitability | Staff Compensation Strategies – Part I

physical therapist billing strategyBy Yuval Lirov, PhD, Dave Macolino, and Kevin McGovern, DPT

“It’s ten minutes past eleven at night…Where is Peter?” Alicia asked herself as she woke up from dozing in front of the TV with their daughter, Jessica. She was pleased to hear the sounds of an unlocking door and Peter walking in. He looked exhausted but was happy to carry Jessica to bed. After all, it was a Saturday and he should have had the day off.

Alicia was proud or her husband. He worked tirelessly without counting hours, evenings and weekends, so that he could accomplish his goal of owning his own physical therapy practice and give Alicia the freedom to dedicate herself to raising their two children and continue pursuing her MBA.

Peter opened his physical therapy practice two years ago and built his business from the ground up. Referrals were growing rapidly and he was now seeing 100 patient visits per week. He recently hired a PTA in addition to his administrative staff to help him with his growing case load. His passion was treating patients but his current priority was building his practice and achieve physical therapy profitability. Peter was telling Alicia that in a year or two, he could pull in more than $600,000 a year, perhaps making $6,000,000 over ten years.

“Pete, Jessica was really upset that you missed her soccer game again. All of the other Dads were there.” Alicia said disapprovingly. Peter worked every evening and weekend over the past 3 months. “I don’t understand why you spend every night and weekend in the office,” she said. “Isn’t your staff supposed to be doing most of this work while you are treating? Do they stay late to help you?” she asked.

“I really don’t need this extra stress right now,” he replied. “I can’t pay them overtime to help, and I really can’t sit there and watch what they’re doing all day.”

“You know, Peter,” pressed on Alicia, “It’s clear to me that you’re not managing your staff properly.”

Peter felt like he was punched in the stomach. He wasn’t going to challenge Alicia. For the past two years, she managed to take care of Jessica while pursuing her MBA. Peter started getting a headache.

“You are heads down all day treating patients and not paying attention to what is going on with your staff.” she added. “Last month, you had to replace both your front office person and two months ago, you replaced your biller.”

“You’re paying your administrative staff $12 and hour and you just hired a PTA for $45,000 a year but you’re doing most of the work anyway.” Alicia continued, getting more agitated. “You have to be losing money because of the turnover and salaries and on top of that, you’re never home anymore. If you are going to see 100 patients a week and then spend every night and weekend doing business administration, why have staff at all?” Alicia asked.

“Good question, I don’t know” Peter reluctantly replied.

“Katherine called the other day.” Alicia said.

** to be continued :  Physical Therapy Profitability | Staff Compensation Strategies – Part II

PT Clinic Control 5 | People, Process, and Technology

Physical Therapy Software | Practice Management  Work Smarter, Not Harder

By Chris Martin

A physical therapy practice owner must get used to thinking about his or her time in terms of revenues and costs, and a successful enterprise must generate more revenue than costs. The top three reasons for sub-optimal practice performance are problems in any of the components of the service: namely, process, people, and technology. When the physical therapy practice owner neglects any one of them or fails to operate all three of them correctly, the practice starts bleeding cash.

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Control is the key. The people component is about control, and it starts with the owner.

Control is also the most important part of technology – and it too starts with the owner. Control is always about your ability to make changes to your process, people, and technology so that you are on track to accomplishing your long term financial goals for the practice.

If your technology does not support your processes and your people, and if you are unable to customize it, to tweak it every time when you make a change to your processes or your staff, then your technology will impede you and prevent you from reaching your goals.

Next, practice owners’ time is the most expensive component of their practice. Obviously, when they spend that time seeing patients, they maximize their value; and when they write notes, they reduce their value.

The cost of visit physical therapy documentation is much higher than just the cost of the SOAP system because it takes YOUR time to document. You need to compute the cost of writing a SOAP note. Actually, you need to compute the cost of writing all your SOAP notes for the next ten years.

Process optimization puts it all together. This highly effective process results in a “working smarter not harder” atmosphere.