In this highlights episode, Meredith Soelberg and Brooke Mitchell describe their experience as employees in an insurance-based physical therapy practice that had to “weather the storm” of massive reimbursement cuts. The impact of those cuts made it apparent that they’d have to change their business model or face economic ruin. The cash-based practice model seemed to be the obvious solution, so the decision was made to give it a try.
Meredith and Brook explain exactly how the transition to cash-based was managed so the practice could remain viable for the long term. This information is especially relevant in light of the recent announcement of the coming 8% cuts to Medicare reimbursements for physical therapy services that will soon leave many practices facing similar situations.
Their ultimate success with the cash-based practice model as employees helped prepare them to open their own out-of-network practice, a concierge physical therapy and fitness facility that combines rehabilitation and wellness services. Their highly successful California clinic has grown to employ multiple physical therapists, personal trainers, Pilates instructors, and massage therapists.
This “highlight” is from a full episode on how to succeed with a cash-practice partnership.
More specifically, we discuss these cash-based practice topics:
- How the large reimbursement cuts of some major insurers forced the practice where they both worked to change their billing model in order to survive.
- Exactly how the transition from an insurance-based to out-of-network was successfully managed in that practice.
- What worked and didn’t work to maintain patients during the transition to cash-based physical therapy.
- Which forms of marketing were most effective in bringing new patients into the cash-based model.
- How they managed the relationships with physician referral sources during the transition.
- The characteristics of the physicians who embraced the out-of-network model and continued referring patients.
- The characteristics of their current patient population and how they provide the value that makes their patients choose them over in-network practices.
Resources mentioned in this episode:
Interested in the cash-based private practice model?