Saving with physical therapyIt’s great to get paid cash for physical therapy but all that matters is what you keep. There are three . Fewer support staff, lower rent, and little high cost equipment.

Fewer support staff.

An average traditional PT practice has 2.5 support staff per physical therapist. This includes a receptionist, a biller, possibly a PTA, and an aide / back office staff. With a cash practice no medical biller is needed and many practices have no support staff at all.

A very savvy cash PT friend of mine believes that once a cash PT is up to 70% capacity he or she should hire a single support staff to assist in all areas. Having a $15/hour assistant however decreases your hourly income by just that amount or about $30,000 / year .

This assumes you are actually paying the staff member about $12/hour and saving the $3 / hour to pay the taxes and employment expenses. Independent contractors can be used in some limited capacities but as support staff the government tends to call them employees.

Lower Rent

Cash Practices don’t tend to be located in the slums but tend to have very little unused space. Frequently a second story office will have lower rent than a ground floor office and appeals to the type of customer that is willing and able to invest in his or her health. As you start your cash practice rent the minimum of space. There are ways to “pay” sustainable free rent to the benefit of all involved that we cover in our cash physical therapy practice home study course.

Little Equipment Cost

No cash practice has a $30,000 Biodex/Cybex machine. These are great brands and models but do they make you more money. The founder of Northwest PT , Alvin Haunch confided in me that as he expanded his practice he’d spent too much money for equipment. Equipment is important but don’t think that you need to spend a lot for it. Find out what adds value for your customers and give it to them.

All the best,

Lance P. Van Arsdell, PT, MSPT