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!
– The Physical Therapy Business School Podcast
- Violating Social Norms and Outdated Levels of Thinking - 22nd October 2020
- MORE from LESS: The Go To Strategy During A Financial Downturn (Like here in 2020) - 15th October 2020
- How To Confidently Sell Your Physical Therapy Services - 29th April 2020
- Telehealth: What Does The Future of PT Look Like? - 17th April 2020
- How To Get More Buy-In From Patients - 16th April 2020
- Telehealth: Have You Already Done It Without Realizing? - 16th April 2020
- Telehealth: What Is the Most Important Thing You Can Sell Right Now? - 15th April 2020
- Telehealth: Is A Marketing Funnel Needed Right Now? - 14th April 2020
- Telehealth: What Happens To Discovery Visits? - 13th April 2020
- Telehealth: How Will I Compete With “Big Box” Insurance Companies? - 10th April 2020