Chances are, as a physical therapy business owner, you’re looking for simple ways to increase revenue without needing an MBA. Although increasing top line revenue is only one metric that plays into business efficiency and success, it is — of course — a key variable for a growing company.
The good news is that you have lots of options when trying to increase revenue for your business. Some options are easier to implement than others, and some revenue growth strategies can be implemented tomorrow, whereas some take more time.
But variety never hurt anyone, right?
So, here are the 7 key strategies to grow revenue in a physical therapy practice.
Raise the price of your services.
This strategy is deceivingly simple and often overlooked by most practice owners. Whether you own an in-network or cash-based practice, this strategy can be incredibly beneficial.
Raising the price of your evaluations — and more so your follow-up appointments — is the fastest and easiest way to increase top line revenue. Understandably, as an in-network clinic, you can’t raise insurance reimbursement, but you can increase the price of your cash-pay services.
Even a small increase in price per session can have a substantial impact on your revenue. The higher the perceived value of your services, and the more distinguished your service is compared to the competition, the more you can charge.
Reactivate past clients to new treatment packages.
As long as you keep detailed records with a client relationship management (CRM) tool, your existing client database is your best asset as a business.
Past clients who’ve completed previous plans of care are your best supporters, and you’ve already developed trust with them. Instead of drumming up more evaluations (and the marketing it takes to accomplish that), why not reach out to clients that already love you and your services?
Chances are, they have a new injury, pain, or performance goal that you and your team can help with. A short and sweet “check-in” email can significantly increase your reactivation clients, ultimately boosting your revenue without all the leg work.
Reduce cancellations and drop-offs.
Increasing top line revenue isn’t just about adding new processes or prices: it’s also about decreasing problems that limit your revenue.
The largest “hidden” limiter for most PT practices are cancellations, drop-offs, and incomplete plans of care. These factors can wreak havoc on your revenue — by creating reporting metrics on these areas, you will gain knowledge on what revenue is being left on the table and can then address why these schedule changes are occurring.
When you solve this problem you can significantly boost revenue without spending any extra cash. So, be sure to track your cancellations and clients who only complete 8 out of the 10 recommended sessions: they can make all the difference.
Increase client referrals.
Your existing and past clients are your best referral source. When a client has had an amazing experience, their testimonial and stories go way further than any advertisement or race sponsorship.
The goal for your practice is to capture those stories via online reviews or video testimonials. When prospective clients can experience what it’s like to work with your team before even meeting you, they don’t require as much nurturing between the point of first contact and actually becoming a client.
The problem is that most business owners never ask their past clients for referrals! Often, by simply asking if there is anyone else a client knows that might benefit from your services, that alone can trigger the client to share their story with others.
Why not incentivize referrals by offering a reward when a referral attends an evaluation? You can keep this simple or get creative — maybe you can offer free treatment, or offer up a cool prize. However you do it, current and past client referrals can be a great boost to revenue.
Add new services.
Is there a service that your clients are paying for outside of your practice that you can bring in-house?
Plenty of clients use supplemental health services outside of PT — and if you simply talk with them and learn about what they do, you can figure out what new service you may be able to offer to keep them in your ecosystem. Depending on your clientele, it could be strength training, Pilates, yoga, massage, or acupuncture.
Many clinics have turned to cold laser, shockwave, or cryotherapy as an “add-on” to traditional PT packages. These services often have a “wow” factor while also being backed by research, and that’s a true win-win! It offers a great experience to your clients above and beyond the traditional, transactional PT experience.
All it takes is a simple poll of your current clients: ask them what they’d like you to offer, or what other services they’re already utilizing. This will help you learn more about what services will resonate the most with your clients, what people will want to commit to and book out, and ultimately what will add to your top line growth.
Increase the size of treatment packages.
Another simple way to increase revenue is to increase the size of your physical therapy treatment package options. Instead of offering treatment packages at 6 or 8 visits, why not provide additional discounts for paying upfront if they purchase 12 or 14 visits?
Most clients, as long as you deliver top tier service, want to stay working with you and your team. Why not offer them money-saving incentives to stay for more sessions?
As you can imagine, increasing the size of your treatment packages will directly increase revenue and will reduce your need to drum up more evaluations.
Expand your treatment hours.
The final strategy to boost revenue would be to increase your treatment hours. Have you considered being open on Saturday mornings? What would clients be willing to pay for priority or off hours?
Most people who have demanding 9-5 work schedules would jump at the chance for a Saturday morning visit, even if it came at a premium. By increasing your treatment hours to earlier in the morning, late at night, or on the weekends, you can increase opportunity for people to book and further drive revenue growth.
There you have it. By incorporating any of these strategies — or all of them! — you can directly influence revenue growth in your practice while also delivering a world-class client experience.