• Things to Consider Before Starting Your Own Therapy Clinic

    June 28, 2017 | Kevin Kasmar
  • The Upside of Owning Your Own Clinic 

    There are many benefits to owning your own therapy clinic.  Chief among them may simply be the independence of ownership, giving you the right to control the clinical environment and afford you the opportunity to provide your brand of patient care.  Financially, you will stand to earn both a salary as well as distributions from your clinic’s profits.

    The autonomy of clinic ownership yields some subjective benefits, as well.  Along with the higher earning potential, you get to hire who you want and call the shots. You can also determine what kind of patients you want to treat. You get to live the American dream of entrepreneurship.

    The Challenges of Opening Your Own Clinic

    Launching your own private practice also comes with some financial risks, distractions, and challenges.  A non-exhaustive list of challenges includes:

    • Securing a location
    • designing your clinic’s floor plan
    • confirming your referral network
    • facing reimbursement issues
    • staffing issues
    • acknowledging the growth in physician-owned therapy services,
    • regulatory compliance

    Since you are a great therapist you may believe you will be a great business owner. However, being a well-rounded clinician doesn’t necessarily translate into a well-rounded clinical business perspective.

    Steps to Open a Physical Therapy Clinic

    Here’s a list of steps to open a physical therapy clinic so you can get an idea of what you’ll need to consider. Truly, there are hundreds of items that need to be executed in specific order to ensure a smooth launch. So, recognize that even though you are a great therapist, successfully completing the tasks necessary before and after you launch may be too much for you to handle alone.

    1. Choose a legal entity and register in your state of operation.
    2. Select a location and negotiate your lease, seeking rent abatement and build-out concessions.
    3. Design your floor plan (square footage and layout needs).
    4. Knock out credentialing with insurance companies early to improve cash flow.
    5. Get your PT equipment (and figure out if you should lease or purchase).
    6. Obtain EMR and Practice Management software.
    7. Hire staff (identify what kind of staff, how many, and when).
    8. Ensure back office business needs are covered: Billing & Collections, Bookkeeping, Payroll, A/P and A/R collections, and Banking.
    9. Set up Operating Reports to help you track your clinic’s productivity.
    10. Establish your marketing program to ensure a strong referral system.