Private Practice Physical Therapy. This term
scares some physical therapists, excites others and confuses
many. What is private practice PT? How do they make a
living? Can I start a private practice? What does it take to
succeed?
Physical therapy has been evolving as a profession over the
last 50 years. And recently terms like “Autonomy” have been
closely related to private practice. As physical therapy
evolves into a “doctoring” profession the evolution into
private practice is inevitable for many PT’s. While many
PT’s are excited about this change, many are apprehensive
about it. Further complicating this transition is a messy
and complicated reimbursement system.
First things first
The first question that you have to answer when going into a
private practice is the question “Why?”. Why do you want to
go into private practice? What do you want to accomplish?
How will going into private practice help you achieve your,
professional, personal and spiritual goals? When you are on
your own you need to have a reason to get up in the morning.
You no longer have a boss or a guarantee, and when times get
tough you need to know why to move forward.
Preparation
“Success is when opportunity and preparation meet”. This
quote is often seen on motivational posters, and it is
accurate. We know that there is plenty of opportunity for
physical therapists. We have a shortage of providers and the
aging “baby boomer” population is providing us ample amounts
of potential patients. Therefore, you need to be prepared
for the leap into private practice.” You need to prepare a
personal financial statement. You need to find out how much
you can afford to put into starting a new practice. You want
to identify your competition and will the area you want to
open support a private practice. Are your skills good enough
to stand on your own? You need to identify who the payer
sources are for your type of clinic. In short you need a
good business plan in order to be prepared to go into
private practice.
You also need to be acutely aware to the risks involved in
opening a practice. There are financial risks. You might
lose money. There are personal risks. Failure is traumatic
and you might be embarrassed in front of your friends and
colleagues.
You must also be aware of the rewards. The satisfaction of
building a practice is overwhelming. The pride you take in
helping other people is great. The autonomy you experience
in your professional development is rewarding. The income
potential is good. You should be able to earn $90,000 –
$130,000 per year. The freedom to have control of your life
… Priceless.
Jumping out of the plane
When you open the doors of your own clinic, it feels like
jumping out of a plane with a parachute. For a while you are
free falling and you really hope the shoot opens. Before you
start a practice of your own, you need to decide if you are
the type of person who can jump or not. This is a critical
time in the decision making process. This is where “the
rubber hits the road”. Not everyone can take this leap. All
the preparation in the world, all of the possible
risk-reward analysis can not convince some people to make
the leap. But for the right people, the jump comes
naturally.
Persistence
When the scary part starts, the free fall has begun. The
money is going out faster than it is coming in. Now is where
a true entrepreneur comes through. Every start up has its’
moments in which it seems like nothing is working. This is
the time that you test your metal. But this is where
clinical success is determined.
Some Help
Most physical therapists are inexperienced in the business
world. And many PT’s really don’t want much to do with the
business end of running a clinic. Even more troublesome are
PT’s who think they know what they are doing, but really
don’t have a clue. This is where consultants, networks, and
affiliations come into play.
Consultants can be very helpful, but they also tend to cost
a lot of money. Consultants don’t have to be high priced
however. Use friends, family, and bankers who have a good
understanding of business. They should look at your plan and
tell you what you need to know.
Some physical therapists will join PT networks such as
PTPN. This is OK for insurance contracts, but they are not
very helpful for business advice, marketing advice or any
other support that a start up needs.
Other physical therapists explore joining a larger group
which will
help start a private practice. Some of these groups, such as
USPh,
offer modified employment agreements in which you earn equity and have some
autonomy. Other organizations like Alliant
Physical Therapy Group
offers you the opportunity to set up your own practice
within the group. As you can see, there are many
organizations and groups out there which can help you set up a private PT
practice. A careful analysis should be conducted to weigh the positives and
negatives for each option prior to committing to utilizing an organization or
group who assists with starting up a private physical therapy practice.
If you are thinking about starting a private practice, NOW
is a great time to go into private practice! For more information on starting up
a private practice you can visit the
Private Practice Section of the APTA or contact Chad at
chadnov@aol.com.
Other Private Physical Therapy Practice related
articles by Chad
-
Basic Equipment for Starting a Private Physical Therapy
Practice
-
Physical Therapy Private Practice Tips - Red Flag Rules
Last revised: June 1, 2008
by Chad Novasic, PT
