Starting a physical therapy practice is an exciting venture that requires hard work, dedication, and a solid business plan. Whether you are recently graduated or are an established therapist looking to open a private practice, setting the groundwork for your business is necessary for success. To create a sustainable business, you need to consider everything from choosing a location to determining payment options to obtaining your National Provider (NPI). This guide covers the important considerations for the practice logistics necessary to establish amazing patient care. Our experienced team at ZMark Health is here to guide you through this complex process every step of the way. To ensure a productive kick-off meeting, we invite you to start reflecting on the following items from our checklist:
Geography: Strategic Choices for Your Patients
Practice Locations
Choosing the right location is crucial to your practice’s success. Areas with growing populations or a demographic in need of specialty care will correlate with demand for your services. Establishing your practice near hospitals, gyms, schools, or over-55 communities can create valuable referral opportunities and connections to expand your clientele. Additionally, proximity to referring doctors is an important factor, as many referrals come from physicians who prefer to work with physical therapists located nearby. Finally, don’t overlook practical considerations like public transportation access, parking availability, and ADA accessibility to ensure your location is welcoming and convenient for all patients.
Physical Space
The physical space for your practice should reflect your potential clientele and services. Consider the size and layout needed to accommodate therapy equipment, private treatment rooms, and a reception area if needed. Leasing space with other practitioners could potentially ease financial costs but may limit your growth as a business. Choose space that will allow for additional treatment rooms and more equipment as your practice grows.
Saturation Market
Understanding market saturation is equally important as finding the ideal facility for your practice. Research nearby clinics to determine if existing PT providers in the area could potentially have a corner on the market. A saturated market could require you to review your business plan and consider specializing in your services, so you stand out from other businesses. Offering specialty services such as sports injuries or pediatric therapy could allow your practice to fulfill unmet needs within the community.
Obtaining Your National Provider Identifier (NPI)
As you are working on the brick-and-mortar side of your business, it’s vital to start the free application for obtaining your National Provider Identifier (NPI). As an individual provider, your unique NPI is required if you intend to transmit health information electronically. This unique number issued by the Centers for Medicare and Medicaid Services (CMS) will stay with you throughout your career and will be how you are identified by insurance companies should you establish an electronic billing system and become a credentialed provider. We will briefly discuss both later.
Contracts: Structuring Payment Options
Medicaid
Contracting with Medicaid can make your services accessible to low-income individuals and families. However, Medicaid often reimburses at lower rates than private insurance. Before proceeding with a contract, review the terms carefully to ensure the reimbursement structure aligns with your overall business plan. Research the state-specific requirements for Medicaid providers to better understand the billing and payment process.
Self-Pay
Accepting self-pay patients will provide flexibility and ensure faster payment turnaround. Set clear pricing for self-pay services and offer packages or discounts to make this billing model more appealing. When you have transparent communication about service pricing, it helps build trust and avoid misunderstanding with your patients.
Insurance
Partnering with insurance companies can broaden your patient reach, but there are many steps involved with becoming a contracted provider. Submitting a credentialing application is required to become a member of each insurance network. Researching insurance plans in your area will help you decide which payers to prioritize and give you an idea of the process involved. Each insurer will have unique rules, reimbursement rates, and claims submission requirements. Billing to insurance companies will require an investment in software to help your office run smoothly and keep revenue flowing.
Selecting an EMR System
An electronic medical records (EMR) system is essential for maintaining patient records, scheduling appointments, and managing billing. Choose an EMR tailored to physical therapy practices, ensuring it includes features like treatment documentation, progress tracking, and data submission that is HIPAA compliant. At ZMark Health, we can help you decide on a system that will consider user-friendliness, customer support, and ease of billing so you can focus on patient care.
Staffing: Building Your Team
Hiring a support team is critical to your practice’s success. Start with essential roles like physical therapists, assistants, and administrative staff. Choose candidates with a commitment to patient care and the skills necessary to keep your practice running efficiently. Clearly define the roles and expectations and consider offering competitive salaries and flexible schedules to attract top talent.
Payment & Check-In
Congratulations! Your facility is open and ready for patients. To make a great first impression when they arrive, consider implementing a seamless check-in and payment collection system. For example, a touch-screen kiosk can guide a patient through payment collection, appointment scheduling and intake questions. Using a tablet for self check-in or having a knowledgeable staff member on hand can ensure appointments stay timely and necessary information is captured for billing and documentation purposes. Patients will appreciate stress-free appointments, and your practice will thrive under the adoption of clear, consistent payment policies.
Final Thoughts
Starting a physical therapy practice requires careful planning and execution. Selecting a strategic location, navigating billing options wisely, and investing in the right tools and team are the necessary foundations for a thriving business.
Now that you’ve had a chance to review the checklist, it’s time to schedule a meeting with our team at ZMark Health. Together, we’ll develop a plan, timeline, and action items to move you closer to launching your physical therapy business.