Reach Your Practice Goals with a Clear Plan
With another year of reimbursement cuts upon us and practice costs rising, you may be wondering, “What changes do I need to make to my physical therapy business plan to allow me to serve more patients, hire the right staff, and secure a prosperous future?”
It’s possible. Read on to discover:
- Why Create a Physical Therapy Business Plan
- What’s Possible with a Physical Therapy Business Plan
- 4 Things a Successful Plan Must Do
- A Proven Planning Template
Why Create a Physical Therapy Business Plan?
Since 2008, the Medicare conversion factor, which helps determine how much you get paid by Medicare and guides rates for many other payers, has dropped by 14%. At the same time, inflation increased by 43%.
It’s no wonder that countless practices are fighting just to make enough money to pay their employees.
But with a clear practice plan, you can increase your profitability so you never again have to worry about making payroll or providing for your family’s future.
I believe that if you can’t make a clear plan for your practice, you’re never going to be able to make it happen in real life.
The alternative is to rely on what the insurance providers or marketplace is going to tell you you’re worth. And I can promise you that’s not going to turn out well.
Whether your profitability is stagnating or declining…or even if you’re doing well today but want to stay ahead of the trend…
You need to update your physical therapy business plan every year.
Many owners don’t look at their finances closely. Others only look back at past financials.
Very few will look forward to the future and create a plan for profitability. As a result, they’re missing out on thousands of dollars in potential profit.
To help, I’ve created a tool to help guide you through the process of creating a physical therapy business plan: The 2024 Profit Planner. You can download the tool and get trained on how to create your custom physical therapy business plan.
What’s Possible with a Physical Therapy Business Plan
Imagine being able to:
- Gain more market share as your competitors shrink…
- Grow your practice while scaling back on the time you spend treating…
- Provide quality care to more people in your community…
- Hire more therapists and staff to meet demand…
- Invest back into your team via better benefits and incentives…
This is what’s possible with a physical therapy business plan. My practice is proof.
For years, growth at my practice, Madden & Gilbert Physical Therapy, was stagnant. Then in 2017, we created a physical therapy business plan to hit the growth goals we wanted.
The results speak for themselves.
Barring a dip due to the pandemic, we achieved consistent 20% year-over-year growth, opened 6 additional locations, hired 50+ clinicians, and 5X’d practice value.
And that’s all in spite of reimbursement cuts, rising costs, and a labor shortage.
I’ve taught hundreds of practice owners how to build a physical therapy business plan to help them increase profits, grow, and improve their practice value.
Recently, one practice owner I worked with, Verelle, told me that this process saved his clinic.
He was struggling with a major hiring decision. Using our Profit Planner, he realized he would have lost thousands of dollars each month if he had moved forward with this particular candidate.
There is power in having a physical therapy business plan that clearly lays out your finances and forecasts profit.
4 Things a Successful Plan Should Do
1. Forecast Your Profitability
To be able to hire more easily, offer your staff competitive wages, and continue providing high-quality care, you need a clear picture of your profitability today and in the future.
That involves estimating your revenue and your expenses.
Every business decision you’re considering for 2024 will impact your revenue and your costs. You need to be able to map that out clearly and see how each decision will impact your profitability.
If you can’t make it work on paper, there’s no way it will work in real life.
There are also external market forces that could impact your revenue and costs, such as the 3.34% Medicare cut taking effect on January 1st, which could impact your revenue.
A physical therapy business plan should map out your revenue and costs so you can get an accurate forecast of your profitability in the year ahead.
2. Increase Profits
With a physical therapy business plan in hand, you’ll be able to make strategic decisions about where you should focus your time and effort to increase profits.
It should empower you to ask yourself better business questions, such as:
“What marketing do I need to do to fill my schedules and fully utilize my treatment space?”
“How can I increase lifetime patient value?”
“What do I need to do to improve my payer mix?”
“Can I reduce financial losses from coding issues?”
You can test different assumptions and figure out where you should focus your time and efforts.
Your business plan will allow you to focus on the strategies that are going to have the greatest impact on your bottom line.
3. Align Your Team Around a Shared Vision
A physical therapy business plan is not something for you to keep hidden away in a folder on your desktop.
It should paint a clear vision for your practice.
You’ll be able to share this will your team and refer back to it throughout the year.
Having a vision for the future that you’re all working towards will help foster a strong team culture.
A team that’s aligned around a shared vision for your practice is more motivated, engaged, and committed to your practice.
4. Take Control of Your Destiny
Have you felt underpaid, overworked, and like you’re not in control? When I talk to practice owners, I can tell that many of them ultimately feel like they’re at the mercy of some exertanal force, such as insurance companies, the economy, the government, or a broken healthcare system.
I’m not saying those things don’t have an impact. Of course, they absolutely affect private practice. But with a clear physical therapy business plan, you can take responsibility for your practice and regain control of your own destiny.
You’ll feel more in control of your practice with a clear plan. No matter what is going on externally, you’ll have a firm grasp on what strategies you’re pursuing and how that’s going to help you achieve your goals.
A Proven Planning Template
Unfortunately, most of the people who read this will never create their physical therapy business plan. They’ll spend the next 12 months the same way they’ve spent the previous 12 months: Watching their business expenses go up while revenue stays flat. And feeling powerless to fix the problem.
A Better Option
Our mission at Breakthrough is to empower PTs to help more people in pain solve their health challenges naturally.
That’s why we’re sharing a 2024 Profit Planner that can be your template for your physical therapy business plan.
You can continue to do what you’ve always done…
To get the same results…
To struggle alone while policymakers and insurance companies continue to undercut the value of PT and conservative care.
You can take the next step towards building a more profitable, sustainable, and fulfilling future in private practice by completing your Profit Plan.