A group of Orthopedic Surgeons were referring their patients to unaffiliated physical therapy clinics in the city where their practice was located. They wanted to find a way to grow their overall practice by capturing this physical therapy revenue while better monitoring their patients’ care and progress as they moved through their physical therapy treatment cycle.
The physician group approached Integra Rehab Solutions to help them design a new clinic, equip it, staff it and manage both the start-up effort as well as the billing and collections and management effort once the clinic was operational. Integra compiled several pro forma examples reflecting various financial outcomes which were dependent on varying new patient referral volumes and provided a first-year cash flow forecast so that the physicians knew what to expect during the first year of operation. The doctors had no experience in running a physical therapy clinic and relied on Integra to “turn-key” the opening and to successfully manage the physical therapy operation thereafter.
Within eight (8) weeks of designing the clinic’s layout and completion of the build-out, the new clinic was staffed and ready for its first patient visits. Integra arranged for all credentialing of the staff, and secured both general liability insurance as well as professional liability (malpractice) insurance. Integra trained the staff on its EMR software and the productivity reporting that is proprietary to Integra as well as managed all treasury functions, including cash management and A/P, and produced full sets of financial statements for each month end.
Although the clinic witnessed a slow start in the initial months, by month five (5) the clinic posted significant pre-tax earnings and continued to be profitable every month thereafter, averaging EBITDA of between 25% and 33% of Net Revenues consistently.
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