This is an excerpt from Chapter 4 of my new, Amazon No.1 Best Selling Marketing book for Physical Therapists, “New Patient Accelerator Method: How I Scaled A Four Location, $1,000,000 + Cash Pay Clinic – In A Place Where Health Care Is Free (…And, In One Of The Poorest Parts Of The Country)
“Switching my clinic’s marketing to focus on cash pay patients was liberating for me – to exit the insurance system was easily the smartest and most profitable decision I ever made. I would recommend it to anyone.
However, if you are mostly an insurance-based clinic as you read this, I am NOT suggesting that you immediately end all of the contracts you have with insurance companies. That would be reckless. However, what I am suggesting is that you give at least some thought to the impact that it would have on your business profits if you dropped 20% of the worst payers and replaced $85 reimbursements, (that take weeks to arrive in your bank) with $250 “fee for service” cash pay patients instead who either pay upfront or as they go.
I’ve got Accelerator Method students all over the USA who have done exactly that. Let me introduce you to one of them, Kim Gladfelter of Physio-Fit in San Jose, Ca. Kim’s average reimbursement from the insurance companies was something like $85, and her running costs were something like $82 per hour. It was almost impossible for Kim to sustain running a business on margins so thin. Twelve months after implementing the Accelerator system in her practice, she had dropped many of those crappy insurance companies and swapped $85 reimbursements with cash-pay rates closer to $200 per visit. Not only is Kim significantly more profitable, her practice is seeing fewer patients and she also has a much better cash flow. Win-win.
Now, here’s a key point: it is important to have both profit and cash flow if you want to grow a sustainable business. I know a lot of insurance-based clinics who are “profitable” on paper but never have any money. They are spending it on expenses faster than they are getting paid, living month to month hoping that the big check will arrive on time, sweating that all claims will get approved. All it takes is one screw up by the billing company you hired and you are in the hole, struggling to pay the wages at the end of the month. All of those problems disappear when you are getting paid at the time of service, or even better when you’re paid up front for a 10-session plan of care.
When it comes to building a physical therapy clinic, cash really is “king”.”
Paul Gough’s Marketing book for Physical Therapists –
“New Patient Accelerator Method” is OUT NOW!
To get your copy go here now: www.paulsmarketingbook.com
NOTE: If you order it directly from the OFFICIAL WEBSITE (NOT AMAZON), you’ll pay the same price, BUT, I’ll be giving you some incredible bonuses for doing so… When you go to www.paulsmarketingbook.com – choose purchase OPTION 2 to get the very best free BONUSES that will come with your book including my Wealth Marketing DVD program, Free Facebook Ads PDF, and two months worth of the Cash is King Publication and Coaching CD…
Connect with me on Social Media – and use the hashtag #paulsmarketingbook when you get the book and share your selfie so I can reach out personally to say thank you!
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- Hiring Book For Physical Therapists: “How To Create A Job Ad To Attract The Perfect Candidate” - 22nd December 2018
- Physical Therapy Hiring Book: “How To Create A Success Description For Your Next Hire” - 20th December 2018
- Physical Therapy Hiring Book: “How To Create Your Hiring Plan” - 19th December 2018
- Hiring Book For Physical Therapists: “Establishing The Financial Metric Of Success” - 18th December 2018
- Hiring Book For Physical Therapists: “Who To Hire First?” - 18th December 2018
- Physical Therapy Hiring Book: “The Structure Of All World-Class Companies” - 17th December 2018
- Hiring Book For Physical Therapists: “The Biggest Hiring Mistake I EVER Made (That Cost Me $100,000’s…) - 16th December 2018