WebPT Blog - increasing revenue
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9 CommentsApr 12, 2012| Lindsay Bayuk
Today we're sharing Part I of our interview on starting a medically oriented gym with Jonathan Di Lauri, MPT, CMP, TPI CGFI. Jon is the Owner of JointCare Physical Therapy, a Head Therapist, and Golf Performance Expert. Thanks to Jon for enthusiastically sharing his experience and advise with our readers!Why did you decide to start a medically oriented gym?
It’s been 12 years in the making starting in an outpatient facility. I made several startling discoveries:
- Even into adulthood, no one ever really teaches you how to work out the RIGHT way.
- People were too focused on using exercise to change how they look and not their joint health.
- Our patients were returning to exercise environments with under qualified professionals, only to return injured.
Armed with that knowledge, I not only produced and created an instructional DVD, but I also created a medically oriented gym for those people who had transcended disease and who had finished physical therapy. We wanted them to get the RIGHT training and results. I also used to go to gyms with my patients and they were not being correctly oriented to the gym equipment. Additionally, the patients were being sold personal training that was far beyond their physical abilities. With all of this coming painfully clear to me, the stage was set to launch our gym.
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Apr 11, 2012| Lindsay Bayuk
This post was authored by WebPT Billing Specialist, Geoff Elledge. Thanks for sharing your wisdom Geoff!
There are many different ways to look at your clinic’s finances. You can look at average revenue per patient visit, insurance payer mix, average referrals from physicians and on and on.
Let’s start with a few of the basic questions you should ask:
much does it cost you to treat an average patient?- How much does the insurance pay you per visit?
- What is your average patient cost share per visit?
- How long does it take on average to collect?
These are some of the basic questions you have to ask before you can start to maximize your revenues versus expenses.
First of all, take a good hard look at your fixed costs and figure out how much it costs you just to see a patient. It’s boring, but if you want to run a successful business, there’s no better place to start. I know we are in the business of caring for our patients first, but it is still a business, after all!
Start by calculating your average fixed costs such as rent, utilities, equipment costs/depreciation. Then take a look at payroll, salaries, benefits, etc. Add them up on a monthly basis then divide them by the total number of hours your office is open on a monthly basis, say 160 hours per month. The resulting number is your average hourly costs of operation. If you spend 30 minutes per patient on average divide by two and you have your per patient cost per visit. Confused yet? That is just the beginning.
