Cash-Based Physical Therapy – Pros & Cons

HBI Blog / Cash-Based Physical Therapy – Pros & Cons

After spending some frustrating time with health insurers, especially regarding the reimbursement process, multiple physical therapists have considered moving their practice from being insurance-based to cash-based. Though there are several benefits for both providers and patients, it has few challenges too. Let’s take a look at the advantages and disadvantages of cash-based physical therapy.

Cash-Based Physical Therapy - Pros & Cons

The Pros

An all-cash service offers an array of benefits to both the physical therapists and the patients. A recent study shows that, on average, a physical therapist spends 30 percent of the time to gather payments from insurance companies. Cash-based practice minimizes the hassle that comes with insurance. With almost no paperwork, it is easy for the therapist to concentrate on the patient. Moreover, there are no administrative duties, which means therapists and their staff can spend more time on patient care.

From the view of a patient, they can spend more time with the therapist. With no restrictions on insurance, a therapist can limit the number of patients. As a result, the wait time for getting an appointment is low. Patients, in most cases, enjoy the same-day or next-day appointments. Besides, there are no surprise costs. Patients get to know the overall cost before the procedure starts.

The Cons

The biggest disadvantage of transitioning into a cash-based physical therapy service is to retain the existing patients while looking to welcome new ones. It is possible to experience a loss in the number of patients. Patients, who are under the coverage of insurance, and have few months left before the renewal of their policy, tend to remain under the policy coverage to enjoy the benefits.

Moreover, a cash-based physical therapist will not be regarded as a “participating provider”, which might need to put additional effort, time, and resource into administration and marketing to reach out to as many people as possible.

Overall, there is nothing serious about the cons that cannot be handled. On the other hand, the advantages are massive.

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