Is Your Physical Therapy Practice Leaking Money? 3 Red Flags You Can't IgnoreJan 05, 2024
As a physical therapist, your days are filled with sweat, smiles, and the satisfaction of helping patients overcome pain and regain mobility. But the reality is, you're also running a business. And just like any other business, if your financial plumbing isn't working right, you could be unknowingly flushing money down the drain.
Think your billers are doing things right? Maybe not. Here are 3 red flags that could be silently siphoning off your hard-earned revenue:
Red Flag #1: No Reports
You ask for billing reports. You wait. Crickets. Tumbleweeds. The reports are nowhere to be found. This isn't a case of bad filing; it's a sign of someone keeping the financial curtains firmly drawn. Remember, transparency is your friend in any business relationship, especially when it comes to your money. If your billing team isn't actively sharing insights, it's time to ask yourself why.
Red Flag #2: Aging Accounts
You glance at your accounts receivable and your heart sinks. It's like a scene from a horror movie, with overdue bills shambling around like the Walking Dead. Accounts hanging out in the 90+ day bucket are more than just bad debts; they're lost opportunities. Unless there's a specific reason (like a coding error with insurance), a high percentage of overdue accounts suggests your team might be dropping the ball on denials. Denials are like stubborn patients – they need persistent follow-up and strong appeals to get them moving again. Every day an account lingers is another day your revenue is stuck in limbo.
Red Flag #3: Deadline Fumbler
Unexpected filing deadlines popping up like unwanted guests? This shouldn't be a regular occurrence. Timely claims submission is like catching the early train to reimbursement town. Missed deadlines leave you stranded and behind schedule. Frequent deadline fumbles could be a sign of inaccurate billing or inefficient processes, both of which can lead to costly rejections and delayed payments. Remember, time is money, and in the world of healthcare billing, seconds matter.
If any of these red flags sound familiar to you, it may be time to take a step back and consider changing your billers. If you agree, here's how to start:
- Grab our free guide: "7 Questions You Should be Asking Your Medical Billers". Get the inside scoop on key performance indicators and hold your team accountable.
- Request a billing analysis: We'll dive deep into your finances and expose any hidden leaks, leaving you with a clear roadmap to financial health.
- Stay informed: Read blog posts (like this one!), attend webinars, and network with other PTs. Knowledge is power, especially when it comes to your money.
Running a physical therapy practice is about more than just treating patients; it's about building a thriving business. Don't let your billing become a silent money drain and take action.
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