Starting a Physical Therapy Practice in 2023

Thinking about taking the leap and starting your own practice in 2023? More and more physical therapists are now skeptical of the traditional high-volume, corporate outpatient PT model, choosing to start their own practices as soon as right after graduation. If this is you, here a few questions to think about as you get started:

What will your payment model be?

Cash practice can be tempting, and can be a great alternative to the headaches of insurance billing. However, the choice between going cash-only or taking one or more insurance contracts should be a well thought-out process. Do your research first! What is reimbursement like in your area? Are insurance companies even accepting new contracts from small, local providers? What insurance plan do most people in your town have?

Will you have a physical location, or go mobile?

Mobile practice can be a great way to get started without the risk of taking on overhead. As you build a caseload and some income, you may consider moving to a physical space. Other options include subleasing from an established business like a gym, or renting an office space within a larger medical practice.

Can you keep your full-time job, or a home health or PRN job while you get started?

This option gives you a safety net of an income and benefits while you build your reputation as an entrepreneur and figure out the logistics of owning a business. Noncompetes and non-solicit agreements make this option difficult, but some employers will allow you to build your own practice while continuing to work at your current job (especially if it is in a different specialty).

How long can you afford to see 0-5 patients per week?

Building up a caseload can be a long, slow process, especially if you’re starting a cash practice. Even when you’re following all the right steps, it takes time to fill your schedule. Realistically, how long can you afford to see 0-5 patients per week? This is where minimizing expenses in the start-up phase can be especially helpful- you don’t need to see as many patients to cover your overhead AND start to replace your previous salary.