Start a Physical Therapy Business
Physical therapy practices are part of an ever-changing health sciences industry. Physical therapy has become 1 of the main ways that doctors help patients to overcome injury, regain mobility and learn proper body mechanics. After years of working as a physical therapist, you may decide you want to own your own practice. You should evaluate your motivation, financial health and competition to determine if you can feasibly start a successful physical therapy business. It is important to be slow and deliberate with your plans, because, like any small business, it will face many challenges on the road to profitability. Learn how to start a physical therapy business.
Steps
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
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
