PT News: Physical Therapy Red Flag Rules in Effect June 1

PT and Rehab Businesses Must Comply with Rule per FTC

The Federal Trade Commission has recently enacted the Red Flag Rule which is designed to help prevent identity theft. All businesses, including physical therapy clinics and rehabilitation centers are required to develop and implement a program to comply with the rule.

Does your business comply with the Physical Therapy Red Flag Rule?

The rule applies to financial institutions and creditors and the FTC sees physical therapy clinics as creditors when they accept insurance and bill patients past what the insurance pays or if they allow patients to set up payment plans for a balance owed.

It is highly recommended that your PT clinic implements a manual and that your PTs and employees are trained on the Red Flags Rule.

A written compliance program can be developed by an expert, or the FTC has created a "Do-it-yourself" step by step guide to assist you in becoming compliant with the rule. There is also a handy recording available for purchase by the Private Practice Section of the APTA available here.

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