How to Start a Physical Therapy Business

Friday, December 12, 2014

How to Start a Physical Therapy Business

Physical therapy or physiotherapy (sometimes abbreviated to PT) is the health care profession primarily concerned with the remediation of impairments and disabilities and the promotion of mobility, functional ability, quality of life and movement potential through examination, evaluation, diagnosis and physical intervention. It is carried out by physical therapists (known asphysiotherapists in most countries) and physical therapist assistants (known as physical rehabilitation therapists orphysiotherapy assistants in some countries). In addition to clinical practice, other activities encompassed in the physical therapy profession include research, education, consultation, and administration. Definitions and licensing requirements in the United Statesvary among jurisdictions, as each state has enacted its own physical therapy practice act defining the profession within its jurisdiction, but the American Physical Therapy Association (APTA) has also drafted a model definition in order to limit this variation, and the APTA is also responsible for accrediting physical therapy education curricula throughout the United States of America. In many settings, physical therapy services may be provided alongside, or in conjunction with, other medical or rehabilitation services, including occupational therapy.

Physical therapists are licensed and accredited medical professionals who provide a range of patient care services. Physical therapists can treat a wide range of physical disabilities as well as help patients restore and maintain function, improve mobility and relieve pain. Starting a physical therapy home health business allows physical therapists the opportunity to treat patients in the comfort and privacy of the patients' own homes, while maintaining autonomy through self-employment and/or small-business ownership.

Physical Therapist Assistants

Physical therapist assistants may deliver treatment and physical interventions for patients and clients under a care plan established by and under the supervision of a physical therapist. Physical therapist assistants in the United States are currently trained under associate of applied sciences curricula specific to the profession, as outlined and accredited by CAPTE. As of August 2011, there were 276 accredited two-year (Associate degree) programs for physical therapist assistants In the United States of America. According to CAPTE, as of 2012 there are 10,598 students currently enrolled in 280 accredited PTA programs in the United States.

Things You'll Need

Business plan
Building
Doing business as (DBA) form and other documents
Business license
Liability insurance
Insurance company contracts
Staff
Marketing
Employer Identification Number (EIN)
Small business consultant (optional)
Physical therapy network
Equipment

Curricula for the physical therapist assistant associate degree include:

Anatomy & physiology
Exercise physiology
Human biology
Physics
Bio-mechanics
Kinesiology
Neuroscience
Clinical pathology
Behavioral sciences
Communication
Ethics
Research
Other coursework as required by individual programs.

Instruction

Step 1

Obtain all necessary licensing credentials and board certifications required by governing medical boards in the state in which you plan to operate your physical therapy home health business. If you are hiring additional personnel to work with you, ensure they have all necessary credentials as well.

Step 2

Obtain all necessary business licenses required by the state, city and/or county in which you plan to operate your physical therapy home health business. Find requirements through your state and/or county's website under "business licensing" categories. You may also be required to apply for a permit through your state's health board to provide home physical therapy.

Step 3

Consult an insurance and/or legal professional to get appropriate insurance coverage for your physical therapy home health business. Insurance coverage may include malpractice coverage, liability and insurance of vehicles and equipment you and your employees will use as part of regular business operations.

Step 4

Establish a payroll and billing system, both for receiving payment and for paying employees and suppliers, if applicable.

Step 5

Purchase or rent equipment for your physical therapy home health business. The type of equipment depends on the specific types of therapy you will be offering. Equipment should be portable and easy to move in and out of patients' homes.

Step 6

Apply to become a provider with major insurance companies and Medicare and Medicaid. This allows you to accept a wide range of insurance from patients.

Step 7

Market your business through traditional advertising mediums, such as print and broadcast media, and establish a network of referral contacts with other medical professionals. Use online social networking and Internet marketing as well.

Step 8

Research the market before deciding to start a physical therapy business.There is a lot of competition in physical therapy practices. Consider it a feasible idea if 1 of the following are true:

You offer specialty services that are under represented in your town. This may include pediatric, geriatric, pool therapy, joint, sport or other physical therapy specializations. If you research your competition and find it is small or caters to a different niche market, then you will have an advantage.
You plan to hire other specialty physical therapists or provide other underrepresented services, such as pool therapy or massage.
You want to start a franchise of an established Physical Therapy clinic. If you currently work for a bustling physical therapy practice, or you know of 1 that is open to expansion, schedule a meeting to discuss starting a franchise in another location. You can use the reputation and network that is already created, while still running your own business.

Step 9

Create a business plan. Within the plan, you should explain the business objective, plans to raise financial support, competition, management, marketing, a calendar and the time period in which the business should become profitable. If you are struggling with this step, get help from a chapter of the small business bureau or hire a business consultant.

Step 10

Leave your previous position on a positive note. Starting your own practice can be contentious because you are likely to be competition for your current employers. Explain the reasons you feel it is necessary to start your practice and your desire to remain on good terms.

Step 11

Create an account on the American Physical Therapy Association website.Visit their section on starting a practice at apta.org/PracticeOwnership. You can find excellent advice for choosing a structure, leasing space and more.

Step 12

Choose a location for your physical therapy practice. As soon as you have secured funding, or while you are in the process, you should look for a location with the nearby demographic you often treat. Consider being away from your competition but close to a medical facility.

Step 13

Begin filling out and filing all the necessary paperwork for your physical therapy practice. There are a number of things that are required by the state or country to ensure you are doing business within the legal framework. This includes articles of incorporation, partnerships and tax documents.

Choose a name that is easy to remember. If you plan to have a solo practice, you may just want to use your full name. If you plan to hire more physical therapists, you may choose a general name that states the purpose of your clinic. Fill out and file a "Doing Business As" form with the county or state.
Make sure your personal physical therapy license is up to date with the state. Then, apply for a business license in your county and state.
File your incorporation documents with the state. Also, apply for an Employment Identification Number (EIN) with the Internal Revenue Service (IRS). This will allow you to hire employees and withhold income tax.
Apply for insurance. This may include practice liability insurance, malpractice insurance, property insurance and health insurance for employees. You may hire a small business consultant to help research your options.
Join physical therapy networks, such as PTPN, if you want to accept insurance. It is a good idea for many practices. You can receive insurance contracts through these networks. This usually means receiving a listing on their website and payment, in exchange for some substantial discounts when you receive payment from the insurance company.

Step 14

Hire competent and trustworthy staff for your business. After you secure a location and file paperwork, you will begin forming the structure of your office. Identify and fill the places according to the space, number of physical therapists you want, assistants and other staff.

Step 15

Begin marketing your business as soon as you are able to. As well as doing television, radio and print advertising, you should begin marketing your specialty services to local doctors, clinics and hospitals. Referrals from friends, family and medical practices are likely to provide the majority of your patients.

Set your rates according to their going rate in your state. You may decide to give discounts for new clients in the first 6 months, to help your practice get started.

Step 16

Buy equipment and set up your office. As identified by your business plan, starting a physical therapy practice requires good start up capital because you need a location and a good amount of equipment. Make investments in durable, essential workout, massage and other equipment.

Step 17

Be persistent. It will take a few years of networking, marketing, overtime and strong management to make a new physical therapy business a success. If you are determined to see the business to a successful stage, then you are more likely to be able to handle the obstacles that you face.

Tips

This represents a small portion of the things that are necessary to start a small business. Call your County Clerk or Secretary of State to inquire about the steps needed to start a physical therapy small business in your area.

Reference

No comments:

Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

Pages

Friday, December 12, 2014