Remote therapeutic monitoring (RTM) is revolutionizing the way physical therapists engage with their patients and manage their progress. In addition to enhancing patient care, implementing RTM in a private practice physical therapy clinic can have substantial financial benefits. In this blog post, we’ll explore the financial implications of implementing remote therapeutic monitoring in a physical therapy practice.
Financial Implications of Remote Therapeutic Monitoring:
Increased Revenue per Plan of Care
RTM allows physical therapists to bill additional codes, including the initial setup fee, monthly device fee, and fees for monitoring time. By incorporating these additional billing codes into a physical therapy plan of care, the average additional revenue generated per patient can be around $333.
Higher Patient Engagement Rate
Aiming for a 70-75% patient engagement rate with RTM can significantly impact the clinic’s bottom line. Based on a case study from a private practice clinic, with an engagement rate of 70%, the annual profit was $140,000. This profit is generated by providing remote therapeutic monitoring services to the patients without increasing the clinic’s workload significantly.
Increased Profit Margin
RTM can lead to a considerable increase in the clinic’s profit margin. In the case study mentioned above, implementing remote therapeutic monitoring increased the profit margin by 69.51%, taking it from a 20% margin to a 33.8% margin. This can be a game-changer for private practices, especially when reimbursement rates are decreasing, and the average profit margin is low.
Improved Patient Outcomes
While not a direct financial benefit, implementing remote therapeutic monitoring can lead to improved patient outcomes. With better patient engagement and monitoring, patients are more likely to follow their home exercise programs and achieve better results. This can lead to higher patient satisfaction, increased referrals, and a better reputation for the clinic.
Implementing remote therapeutic monitoring in a private practice physical therapy clinic can yield significant financial benefits, increasing revenue per plan of care and boosting profit margins. By offering RTM services, physical therapists can enhance patient care, improve patient outcomes, and strengthen the financial stability of their practices.
Incorporating remote therapeutic monitoring into a physical therapy clinic requires an initial investment in technology and training. However, the potential return on investment, improved patient outcomes, and increased profit margins make it a worthwhile consideration for private practice owners.