8 strategies to boost your physical, occupational, or speech therapy practice’s cash flow

Running a successful therapy practice is a rewarding journey, but it can also come with its fair share of challenges—especially when it comes to managing cash flow. A healthy cash flow is essential for ensuring that your practice thrives and continues to serve your clients effectively. Here are some practical strategies to get your cash flowing smoothly: 

1. Streamlined and efficient billing 

One of the most effective ways to improve cash flow is to ensure that your billing processes are efficient and straightforward. Timely and accurate billing is the cornerstone of good cash flow. Think of it as the engine room of your finances. 

Electronic billing systems: Ditch the paper and go digital! Electronic billing software helps you create, submit, and track claims efficiently, minimizing errors and speeding up payments. Nowadays, most EHRs should already include robust billing tools. 

Stay updated on billing regulations: Coding and billing rules change frequently. Staying informed prevents claim denials and delays. Subscribe to industry newsletters, attend webinars, or consult with a billing specialist to stay on top of things. Your EHR may include a license so you can access up-to-date codes while documenting.  

Clear fee schedules: Make sure your patients understand your fees upfront. Provide a clear explanation of costs, including co-pays, deductibles, and payment plans. Transparency builds trust and reduces billing confusion.

2. Encourage prompt payments 

Make it easy for patients to pay you quickly. Encouraging prompt payment can have a noticeable impact on your cash flow.  

Offer incentives: A small discount for upfront payment or paying within a specific timeframe can motivate prompt payment. 

Multiple payment options: Provide a variety of payment methods – credit/debit cards, online portals, e-checks, and even mobile payment apps – to cater to different preferences. 

Payment plans: For larger balances, offer flexible payment plans to make it more manageable for patients. 

Keep credit cards on file: Ever had a client ghost you or refuse to pay? Having a credit card on file can help prevent missed payments. 

Clear payment policies: Outline your payment expectations in your patient intake paperwork and ensure patients understand them. 

3. Improve insurance verification and authorization processes

Smooth insurance verification and authorization: Delays in insurance verification and authorization can lead to frustrating payment holdups. Avoid payment delays by verifying insurance coverage before the appointment.

Proactive verification: Check eligibility and benefits as soon as a patient schedules. This allows time to address any potential issues before services are rendered. 

Electronic verification tools: Use your EHR’s online portals or integrated software to streamline the verification process.  

Dedicated staff: If possible, designate a staff member to handle insurance verification and authorizations to ensure timely processing. If not, schedule dedicated time to do this. 

4. Optimize patient scheduling

A well-organized schedule keeps your therapists busy and your revenue steady. It’s a balancing act, as you need to make sure they have enough time to document, bill, and take a breather. Overfilling schedules leads to lower quality of care and burnout. 

Minimize gaps: Strategically schedule appointments to reduce downtime between patients and ensure that your therapists’ time is used effectively. But don’t forget to set time for admin work and session prep. 

Appointment reminders: Reduce no-shows and lost revenue by sending automated appointment reminders via email, text, or phone calls. 

Online scheduling: Empower patients to book appointments online, freeing up your staff and improving scheduling efficiency. 

5. Implement a monitoring and collections system

Keep a close eye on outstanding balances. An effective monitoring and collections system can help you identify and address outstanding balances promptly. Regularly review accounts receivable aging reports to identify overdue payments and follow up with patients and insurers to facilitate timely collections.  

Regularly review aging reports: Identify overdue payments and take action promptly. 

Established collections process: Develop a clear, step-by-step process for following up on overdue accounts, including phone calls, letters, and potentially using a collections agency as a last resort. 

Track key metrics: Monitor your average days outstanding (ADO) and collections ratio to identify trends and areas for improvement. 

6. Offer cash-based services

Consider offering cash-based services such as wellness programs, fitness classes, or specialized therapies. These services can help attract self-pay patients and supplement your insurance-based revenue, ultimately boosting your overall cash flow. 

Wellness programs: Offer services like yoga, meditation, or mindfulness classes.

Specialized therapy services: Provide niche services not typically covered by insurance, such as specialized treatment techniques or intensive rehabilitation programs. 

Package deals: Bundle services together at a discounted rate to incentivize purchases. 

7. Negotiate favorable payment terms with vendors

Managing your accounts payable is just as important as handling your accounts receivable. Don’t be afraid to negotiate better payment terms with payers. Extending your payment terms or asking for early payment discounts can free up cash for your practice and help you invest in growth opportunities. 

Extended payment terms: Negotiate longer payment periods to free up cash flow. 

Use data: Some payers are moving to various value-based or outcomes-based models. Your EHR can help you gather data showing your services are effective, medically necessary, and help cut costs by preventing expensive medical procedures such as emergency room visits. 

Early payment discounts: Ask for discounts in exchange for early payment. 

Consolidated billing: Combine multiple vendor invoices into a single payment to simplify accounting and potentially negotiate better terms. 

8. Monitor key performance indicators (KPIs)

Track the metrics that matter most. Keeping an eye on essential KPIs like average days outstanding (ADO), collections ratio, and denial rates can provide valuable insight into your practice’s financial health. By regularly analyzing these metrics, you can identify areas that need improvement and make informed, data-driven decisions to enhance your cash flow. 

Days sales outstanding (DSO): How long does it take to collect payments? 

Collections ratio: What percentage of billed amounts are you actually collecting? 

Denial rates: How often are claims denied, and why? Analyzing denials can help you improve your billing processes. 

Additional tips for success

Use the right software: Invest in software specifically designed for therapy practices. These platforms often integrate scheduling, billing, and reporting, simplifying financial management. (Ensora Rehab Therapy Suite is one such option.) 

Financial expertise: Consider consulting with a financial advisor or accountant specializing in healthcare practices. They can provide valuable guidance on budgeting, cash flow management, and tax planning. 

Regular financial reviews: Set aside time each month to review your financial statements and track your progress. This helps you identify potential problems early and make informed decisions. 

Get help: Revenue cycle management services enlist a team of experts that handle your insurance billing. They take most of that burden off your shoulders. Some providers, like Ensora Rehab Therapy Suite, only get paid if you do, so they’re incentivized to make sure you get paid as much as possible. We have a collection rate above 95%, so if you’re struggling, it might be time to see if you qualify for these services. 

Implementing these strategies can significantly enhance the cash flow of your physical, occupational, or speech therapy practice. By optimizing your billing processes, improving payment efficiency, and proactively managing your finances, you can create a steady flow of revenue that supports the growth and success of your practice. 

Discover how Ensora Rehab Therapy Suite can help 

At Ensora Rehab Therapy Suite, we understand the unique challenges faced by physical, occupational, and speech therapists. Our all-in-one platform is designed to streamline and optimize your operations, making it easier than ever to manage everything from scheduling to billing—all in one user-friendly interface. 

With Ensora Rehab Therapy Suite, you can efficiently schedule patient appointments, ensuring your therapists are utilized effectively, and minimize gaps in your schedule. Our advanced billing features allow you to submit claims quickly and reduce billing errors, helping you get paid faster. 

Ready to see how Ensora Rehab Therapy Suite can transform your practice? Schedule a demo today and discover how you can enhance your revenue and improve your cash flow with our innovative solutions!