From a successful Physical Therapy Business owner. 

Dreaming of independence?

Is it time to get started and build your own physical therapy practice? 

You have the power to design a career instead of falling into the cultural expectations that seem to be so black and white. I find so many entrepreneurs love working as part of a team, but are looking for ways to develop and celebrate diversity. 

If this resonates with you, keep reading and get ready to head out into the world with something new and quite frankly, brilliant. 

Having your own PT Physical Therapy business has some amazing highs and some interesting lows (think of those as learning opportunities). Entrepreneurship and starting a new business isn’t for everyone. There will be tough times and hard decisions to make. 

About Me – Dr Hollie Neujahr

Starting a Physical Therapy practice whilst still employed

It’s best to tackle this one straight on. 

Not all of us are in such a lucky position to be able to start a Physical Therapy practice from standing. 

Many of us need to start the process whilst still employed, so here are some key considerations before we get into it: 

• Time Management: Balancing a full-time job with starting a business is demanding. Be prepared to work evenings and weekends to get your business up and running. 

• Financial Cushion: Have 3-6 months of living expenses saved as a safety net while you build your practice.

• Support System: Surround yourself with supportive friends, family, and mentors  – do contact me at the Sisu Practice – who can offer advice and encouragement.

• Integrity at all Times: Physical Therapy is a small field. Work with integrity wherever you are with your new business. Your reputation is everything. So be professional and transparent with colleagues and other health-care professionals… simply don’t burn your bridges! 

Laying the Foundation

Self-Assessment: Let’s start with you and your own traits and values. Owning a practice demands dedication, business acumen, and a passion for patient care. You have to be flexible, and have the ability to wear multiple hats, from managing finances to marketing your services. Ok, so you don’t have to be expert in all those things. You can hire an accountant, and outsource your marketing, but you do need a basic knowledge and the willingness to learn (especially at the start of your journey). 

Action:  Honestly assess your strengths, weaknesses, and commitment level.

Carve Your Niche: What sets your practice apart in a competitive market? Specializing in areas like sports medicine, geriatrics, pediatric or pelvic floor therapy can attract a targeted clientele and establish your expertise. You could also pick a specific age group, or topic, such as perimenopause, or PT for runners. 

Top Tip: Research. You don’t have to be the only one in your niche – quite often it shows a need if there are already PTs – but you do have to be brilliant, and dedicated to your specialist area. Or… what is your passion? Choose your interest and become a master of that topic. Become the expert. 

Craft a Rock-Solid Business Plan:  Your business plan is your roadmap to success. It outlines your practice’s vision, target market, financial projections, marketing strategy, and operational plan. A well-structured business plan is crucial for securing funding and guiding your growth. It doesn’t have to be complicated, or pages long, it just requires thought. It will also bring into strong focus what needs to be done to get your practice up and running.

Top Tip: Include an exit plan, whatever the circumstances it best to know the beginning, the middle and the end! 

Navigating the US Legal and Financial Maze

• Choose the Right Business Structure: Consult with an attorney and accountant to determine the optimal legal structure for your practice (e.g., sole proprietorship, LLC, S-corp).  Each has implications for liability, taxes, and administrative requirements.

• Secure Funding for Your Vision:  Due to the very nature of our business there will be an initial outlay of capital. Even if you are starting on a shoestring! Starting a practice requires capital for equipment, potentially rent and salaries, and more. Explore funding options like Small Business Administration (SBA) loans, lines of credit, or even partnerships. 

• Obtain Licences and Permits:  Ensure you comply with all federal, state, and local regulations. This includes obtaining your physical therapy licence from your state board, a business licence, and any specialized certifications required for your niche.

• Insurance and Health Care: Navigating insurance options and incorporating telehealth into your physical therapy business is challenging. When deciding which insurances to accept, it’s crucial to evaluate the needs of your target demographic and the reimbursement rates offered by various providers. Consider forming partnerships with insurance companies that align with your practice’s values and patient base. Ensure that you can provide accessible care while maintaining financial viability. 
• Risk Management: Managing payment risks is key to a thriving physical therapy practice.  Focus on accurate billing and coding to avoid claim denials.  Establish clear patient payment policies and efficient collection procedures. Negotiate strong contracts with insurers for optimal reimbursement rates.  Monitor your financials closely, tracking revenue and expenses. 

A Note on Navigating Medicare

Navigating Medicare needs some investigation and your attention. Once you have your licence you then can enrol as Medicare providers. Medicare Part B covers medically necessary outpatient physical therapy prescribed by a physician. Key requirements include proper documentation demonstrating the medical necessity of the treatment, accurate use of billing codes (CPT codes), and adherence to Medicare’s payment policies.  

Be aware of the annual therapy cap, a financial limit on Medicare payments for therapy services, though exceptions can be made with the KX modifier when medically necessary. Consulting with a billing specialist or healthcare attorney familiar with Medicare regulations is highly recommended for new practices to ensure compliance and proper reimbursement.  This will help you avoid potential payment denials and legal issues down the road.

Setting Up Your Practice

Prime Real Estate Matters: Choose a location that is convenient for your target market. It needs to be easily accessible, and offer adequate space for treatment rooms, a waiting area, and office space. Consider visibility and parking too! You could consider a mobile service to cut down overheads.

TOP TIP: Consider your own needs. Your location needs to be convenient for you too, also think about your new staff, and where they are going to be living and commuting from. 

Invest in Top-Notch Equipment:  From treatment tables and therapeutic modalities to office equipment and software, invest in high-quality tools. Good equipment decisions will enhance patient care and streamline operations.

ACTION: Choose wisely and think sustainability. How can you keep your carbon footprint to a minimum, this might be crucially important to your target clients!

Embrace Technology:  Think digital, tech and automation wherever possible. The easier your systems and processes the more time you will have working on the business. User-friendly website, online scheduling, electronic health records (EHR) compliant with HIPAA, and telehealth options are essential for attracting patients and managing your practice efficiently. 

Teleheath Integration: A telecare service can enhance patient engagement and expand your reach, especially for those who may have difficulty attending in-person sessions. To effectively manage telecare, invest in user-friendly technology and ensure compliance with HIPAA regulations. By strategically selecting insurance partnerships and embracing telehealth, you can create a more flexible, patient-centered practice to meet the evolving needs of your patients. 

Telehealth offers exciting opportunities for physical therapy, but navigating interstate regulations requires careful consideration. While some PTs use terms like “coaching” to offer services across state lines, ethical and legal ambiguities remain. It’s crucial to understand your state’s licensing laws and practice act regarding telehealth to ensure compliance and maintain ethical standards when providing remote services. Seeking legal counsel specializing in telehealth and physical therapy is highly recommended to navigate this evolving landscape responsibly.

Streamlining Operations

Simplify Scheduling and Billing: Pick an intuitive platform to streamline appointment scheduling, patient intake, and billing processes, freeing up valuable time to focus on patient care.

Focus on What Matters: Your Patients: By automating administrative tasks and providing real-time data, Sisu empowers you to dedicate more time and energy to what truly matters – delivering exceptional patient care.

Marketing Your Practice

There are elements of your marketing you need to get right from the off. But, don’t let the marketing and building your identity hold you back: 

Build a Powerful Online Presence: A professional website, active social media engagement, and online directory listings (Google My Business, Healthgrades, etc.) are crucial for attracting patients in today’s digital landscape.

Network and Build Relationships:  Attend industry events, connect with physicians and other healthcare providers as a starting point. Engage with your local community to build valuable referral networks.

Exceptional Patient Experience is Everything: Positive word-of-mouth is gold. Provide exceptional care, personalized attention, and create a welcoming environment to foster patient loyalty and generate referrals. Your clients will be looking at on-line reviews and a few bad. Lack-lustre reviews can really put you on the back foot too.

Work Culture

So often overlooked, this is a key component when you think about starting your own Physical Therapy business practice.

In the competitive landscape of US healthcare, having skilled therapists and a solid business plan isn’t enough to guarantee success for your PT practice. 

What truly sets apart thriving practices is a strong, positive culture, going beyond just a friendly atmosphere. Culture is about establishing a shared set of values that permeates every aspect of your business. Culture is how you interact with patients as well as how you support your team. A strong culture is the invisible force that drives patient satisfaction, employee engagement, and ultimately long-term success.

Here’s how to build a winning culture:

• Define and live your core values: Make sure your actions reflect your principles, whether it’s patient-centered care or teamwork. Visibly live your own values.
• Empower your team and foster open communication: Encourage feedback, value input, and create a supportive environment where everyone feels heard. 

What’s next?

Well that’s up to you. Unless you act, your dream will not come true. The Sisu Practice is here to offer you the support and advice to help you over your initial hurdles: 

• Business planning sticking points. 
• Helping you to identify your niche.
• Advice on set up, legals and equipment.
• Staff training and culture. 

You can thrive and design and build a remarkable Physical Therapy Practice, and we’d be delighted to help. 

Perhaps you’ve got this far and now you’re not sure of your way forward, but are still feeling that you want to move forward. If that’s you, stay tuned as we go delving deeper into self-pay practice, how to integrate your new practice while still employed, and why you should NOT start a PT company! 

Moving forward …

Dr Hollie is available to support you through her PT specific coaching and mentoring programme.

Book your free initial call to discuss your goals and options, your approach to career development and how you’d like to build your business. Whether you are in early thinking phase or at final fit-out, you will benefit from a discussion with a seasoned, experienced PT practice owner.