HOW YOUR CLINIC CAN OVERCOME REIMBURSEMENT CUTS IN 2025 THIS IS WAR
Build profit centers. “Profit centers” are areas of your business that have higher profitability than other services but are still a good value for your patients. To create a profit center, you may need to add additional services like massage, acupuncture, dry needling, diagnostic ultrasound, EMG, laser therapy, etc. Renegotiate insurance contracts. When was the last time that you went through all of your insurance contracts and asked for a raise? Hopefully, it was less than 6 months ago. It is a good practice to frequently renegotiate insurance contracts. Know your worth and ditch poor-paying insurance contracts. Calculate your operating costs for each patient. Understand your absolute minimum reimbursement per visit. This can help guide you in determining what insurances you should keep and who you should not renew contracts with. Sometimes it can be painful to let a big network go, but if you have to see 4 patients an hour to break even, is it even worth it? THE BOTTOM LINE: ONLY YOU CAN LEAD YOUR PRACTICE TO SUCCESS Reimbursement cuts you can’t control (like Medicare) are unfortunate. But ultimately, many things are in your control. So, don’t base your clinic’s success on anyone else’s decisions, excuses, or opinions. If you know how to apply these 3 key actions, you will be able to overcome many challenges from the insurance world. Keep your pipeline full with effective marketing, maximize your practice efficiency, and keep tight control of your finances.
STEP 2: KEEP YOUR PIPELINE FULL OF NEW PATIENTS WITH MARKETING. You have to keep your practice space filled to the brim with patients!!! This is where the most money is lost in a practice, and profitability goes down the drain! You are a service business. That means the name of the game is servicing as many people as you can with the resources you have: space and therapists. The most money you will ever lose is the money you never made because you did not have enough new patients to maximize your space. A good benchmark is > 100 patient visits per 1000sq ft of space. Therefore, in a 2000 sq. ft. practice, you should be seeing > 200 patient visits per week.
Marketing = Your Investment in Business Growth
Did you know that marketing is classified as an investment, not an expense? Marketing actually creates more dollars for every one you put into it. A big mistake many practice owners make when concerned with their reimbursement rates is putting marketing activities on the chopping block. This hurts your ability to drive new business and revenue into the practice. Tight finances are fixed by patient volume. And marketing is what produces patient volume. Most practices don’t even get to the industry standard of 8% of gross revenue spent on marketing activities that the Small Businesses Association recommends spending on marketing. Are you choking the life out of your potential practice growth by not marketing the way you should?
STEP 3: BUILD PROFIT CENTERS AND REVISE CONTRACTS.
Here’s to your success!
Money is the lifeblood of your business. You can’t help more patients get better if you can’t be profitable and have a thriving practice. Bear these things in mind:
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