Physical Therapy Business Tips
August 25, 2025
Thinking about starting or restructuring a physical therapy business? Then, you’re probably grappling with the daunting tasks of determining which physical therapy business model is right for you! There are so many options. Narrowing those down to the best option for your business goals can be overwhelming.
This article will help you out by breaking down the 8 most common (and profitable) business models for physical therapy. You’ll learn the fundamentals, as well as pros and cons of each option.
Let’s get started!
Physical therapy business models can take various forms depending on business goals, target audience, and resources available. Here are some of the common business models:
This is the most common type of physical therapy business model. Here, a physical therapist starts their own businessand provides services directly to patients. The therapist could rent or own a space where they provide one-on-one sessions. Some private practices may focus on specific areas of physical therapy like sports injuries, pediatrics, neurology, etc.
Starting and running a private practice comes with several benefits:
There are also a few drawback to keep in mind when considering this physical therapy business model:
An In-Network Insurance Model refers to a physical therapy practice that contracts with insurance companies to treat their policyholders. As an in-network provider, you’re listed in their registry, so new patients can find you. After treatment, the practice submits a claim to the insurance company for reimbursement. If the claim is denied or not fully covered, the patient is responsible for the remaining balance.
If you choose an in-network insurance model, you’ll need additional staff. Hiring employees proficient in medical billing is essential to submitting insurance claims and billing patients if claims are denied.
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Out-Of-Network and Cash-Based physical therapy practices bill patients directly for their services. The business is paid up front, and they’re free to set their own rates. Not all patients can afford to pay out-of-pocket, but they can request reimbursement from their insurance.
Cash-Based practices are able to offer more personalized treatment plans and a wider range of services. They have to invest more in marketing, but people are willing to pay for specialty services they can’t get in traditions physical therapy practices
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When a physical therapist is part of a multi-disciplinary practice, they work closely with other healthcare professionals to provide comprehensive care to patients. The team may include doctors, nurses, occupational therapists, psychologists, dietitians, social workers, and other healthcare professionals.
This type of wellness business can be organized in a few different ways, depending on the pay structure. It’s common for multi-disciplinarians to set up as a partnership or for practitioners to rent rooms from the business.
Sometimes, a physical therapist might choose to open their own clinic, and bring on the staff - other times it may be a partnership - and sometimes the clinic owner isn’t a practitioner at all.
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Home health physical therapy is a business model where physical therapists provide services directly to patients in their own homes. This model is particularly beneficial for patients who have difficulty leaving their homes due to mobility issues, chronic illness, or post-surgery recovery.
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Workplace physical therapy, aka occupational PT or industrial PT, is a type of physical therapy service specifically tailored to address issues related to workplace health and safety. These services are often provided on-site at businesses or industrial locations.
The main goal of workplace physical therapy is to prevent and treat work-related injuries, enhance the health and productivity of employees, and decrease workers' compensation costs for employers.
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When a physical therapist partners with a health and wellness business, such as a gym, yoga studio, or a health club, it can offer a comprehensive approach to health and wellness for the clients of both businesses.
This kind of partnership can be mutually beneficial and enhance the value of services offerings. However, as with any business partnership, it's important to have clear agreements about responsibilities, costs, and revenue sharing.
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Telehealth physical therapy involves providing physical therapy services virtually, rather than in-person at a clinic. Consultations, planning, and progress checkups are done via live video conferencing, audio calls, emails, or specialized health apps.
There are many aspects of PT that can be done virtually, but certain aspects of physical therapy are best done in person. Telehealth services aren’t typically a stand alone physical therapy business model, but rather a way to expand your current offerings.
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In a membership business model, physical therapists provide ongoing services to patients who pay a recurring membership fee. This model can be an alternative to traditional fee-for-service or insurance-based payment models. This model allows patients to get as much therapy as they need, for a flat fee.
Often, membership models are cash-based and do not involve insurance billing, though members may be able to use Health Savings Account (HSA) or Flexible Spending Account (FSA) funds to pay for their membership.
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You don’t have to choose just one physical therapy business model. Some physical therapists may combine various models to diversify their income streams. For example, a therapist may run a private practice but also offer home visits and telehealth services.
Physical therapy can be divided into various specializations depending on the types of conditions and age groups they focus on. Here are six broad categories:
Starting a physical therapy business requires careful planning, obtaining licenses and insurance, targeting the right market, creating a strong online presence, marketing effectively, hiring skilled staff, managing finances, offering quality care, and staying updated with industry advancements for a successful and thriving clinic.
Expanding a physical therapy business can be achieved through several different strategies, depending on your goals, resources, and the needs of your market. Consider diversifying your services, adding new business models, developing partnerships, enhancing the patient experience, and using technology to offer virtual services and increase therapists productivity.
Top-paying specialties, according tothis article on top-paying physical therapy business models - is geriatrics, with annual earnings reaching up to $124,000. Other high earners include neurology and pediatrics, especially for board-certified therapists. Specializing can boost salary potential while helping PTs focus on the populations they’re most passionate about.
ClinicSense is practice management software designed to help physical therapy businesses streamline their operations and facilitate growth. It offers comprehensive features that allow PTs to do more, in less time, and provide better care.
ClinicSense is a great option for any physical therapy business model that offers cash pay and out-of-network services. And for Canadian physiotherapists - ClinicSense offers direct billing via Telus eclaims, so you’re options forgrowing your physical therapy business with software are endless!
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