Increasing Clinic Revenue
Declining Reimbursement for Physical Therapy is a huge issue facing the rehab community. While our professional organizations work to defend our work and reform the insurance industry, many private practices are wondering how they can bridge the gap. Often times, this means seeing more patients in the same amount of time. Providers are faced with the often-difficult decision sacrificing on quality of care or finding other methods of increasing revenues.
Medically Oriented Gym
One interesting idea that has come to light recently is a medically oriented gym. Essentially, a medically-oriented gym is the same as a regular gym except that is focuses on the medical aspects of exercise. Clients who have had a prior injury or have certain medical conditions may find it hard to exercise on their own and would choose a medically oriented gym instead of a traditional fitness club. As the Baby Boomer generation continues to age, this scenario becomes increasingly likely. Physical therapists are already movement experts, so implementing a medically oriented gym seems like a natural progression towards discovering new revenue streams.
A few benefits to adopting a medically oriented gym into your clinic:
- Equipment – It is likely that your existing equipment can already be utilized in a medically oriented gym setting. This will hopefully minimize startup costs or let you test the concept without a large investment.
- Patient Relationships – Many patients will want to transition out of physical therapy to the medically oriented gym. This will allow you to further your relationship with the patient and focus on long term care. Customer loyalty is key to private practices and this is a great way to foster that loyalty.
- Cash Flow – Implementing a cash-based business into your clinic will free you from the insurance companies and provide a revenue stream that is more liquid. You can offer classes or monthly fees that will help fund your day-to-day operations.
Overall, a medically oriented gym seems like a great option for small business owners who are navigating an ever-changing environment. This concept is relatively new and we will be keeping a close eye on it to see how it develops.
We would love to hear your thoughts on medically oriented gyms and other cash based business that you have implemented or seen implemented into the private practice setting. Comment below if you have any insights on innovative models of care that can also increase revenues.