The Use of Additional Revenue Streams to Expand Case-Mix in Outpatient Physical Therapy




van Oort, Martijn

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<p>A financial forecast methodology was developed to explore the effectiveness of implementing additional revenue streams in outpatient physical therapy. Revenue streams in physical therapy are projected to decline in the future. In order to maintain sustainability, physical therapists will need to investigate additional revenue streams, or service lines. The purpose of this study was to explore options to replace projected lost revenue with new service lines that may have the potential to exceed the projected revenue losses. The additional revenue streams evaluated in this study were Workers’ Compensation testing, post-offer employment testing, drug testing, and maintenance programs. Financial models were created to show the potential effectiveness of implementing each of these new programs. The models included: 1) a monthly pro forma strictly focusing on the impact of the revenue streams of interest in the study, 2) a long term financial plan for five years after project implementation, and 3) a summary pro forma to project potential impact of the additional revenue streams on total outpatient physical therapy clinic operation. Finally, a questionnaire was developed to assist physical therapists with an in-house evaluation of their clinics to determine if adding the additional revenues streams would be a viable option for their practice.</p> <p>The results of this study suggest that a conservative implementation of the additional revenue streams can be beneficial to outpatient facilities. Potential benefits, substantiated by the financial models indicate that clinics can increase cash revenue and expand their case-mix. The addition of new service lines also can have a substantial impact on overall clinic revenue and income.</p>



Physical therapy, New service lines, Additional revenue streams, Case-mix, Post-offer employment testing, Drug testing


van Oort, M. (2011). <i>The use of additional revenue streams to expand case-mix in outpatient physical therapy</i> (Unpublished thesis). Texas State University-San Marcos, San Marcos, Texas.


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