How to Maximize Your PT Clinic's Revenue

There are many different ways to evaluate your PT clinic's finances. As long as you stay consistent, you can look at the average revenue per each patient visit, average referrals from physicians, insurance payer mix from physicians and so on. Let's take a look into a few basic questions you should ask as you begin to maximize your revenue.

1. How much does the average patient cost to treat?
Begin by looking at the fixed cost of how much it costs you to see each patient. To run a successful business, this is the best place to start. Of course, providing the best care possible to each patient should be a priority, but in order to do so - you need to stay in business.

Start by calculating you fixed costs that will include utilities, rent and general equipment costs (including depreciation). Then, take into consideration your payroll and offered benefits. Add them up (per month), then divide by however many hours your office is open each month - then you'll know your average hourly cost.

Consider investing in online practice management software to help you keep track of each patient's visit. Find an integrated system complete with physical therapy note-taking software and billing tools as a way to create a more efficient office.

2. What's your average patient cost share? Insurance?
You'll want to take a look at your reimbursements and multiple contracts. Larger companies tend to pay $60 or less - and you have to go above and beyond for authorization contributing to your overhead.

Be sure you are actually making money per patient - all things considered. Is your average patient time care allowing you to make, and keep, a profit? There may be no right answer to your final decision, but be sure you are performing a cost/benefit analysis.

Don't fall into the trap of ignoring your patient cost shares (co-insurance, deductibles, co-payments). Create a defined and consistent rate and policy for those patients who request one. One clear assessment you can perform is to be sure the patients' self pay is greater or equal to Medicare. Of course, there will be exceptions - those patients that you may want to cut a break. Just don't make it a habit.

3. On average, how long does collection take?
Keeping your forms in order is a necessity to a successful business, and can be attainted with proper physical therapy note taking software. If you have your balances organized in some form of online practice management software program, you'll be able to assess the balances monthly. Then, develop a clear cut policy on when you plan to turn them over to collections, making it much easier for everyone involved.

To sum it up, set time aside to review your costs, compare those costs to revenue, and develop and organizational method, like online practice management software, to keep up with patient collections. Keep this in mind and you'll be well on your way to exceeding your clinic goals.