- You should be collecting about $262 per square foot.
- Your days in A/R should be at 37 or less
- Your labor costs should be no higher than 65% of collections.
- Your profit should be at least 14% of collections.
- Your arrival rate should be 89% or higher.
Frequently Asked Question about PT Benchmark 2017
What is a Benchmark Survey?
Many industries survey businesses within their field to determine what various companies charge for their services and how they spend their revenues. This survey is designed to collect data from a cross section of outpatient physical therapy practices across the country. Benchmark surveys are used by companies to measure their performance against that of their peers and competitors. They help companies determine if they are operating efficiently and maximizing the use of their resources.
Why is it important to benchmark?
Benchmarking has emerged as an important tool for appraising and developing organization capability through detailed comparisons with other firms. Benchmarking can help a firm:
- Identify areas within the firm where there seems to be potential for improvement
- Compare their performance with that of other similar firms
- Analyze the reasons for the performance differentials
- Use the new learning to redefine goals, redesign processes and change expectations regarding one’s own functions and activities
Has this ever been done before?
PT Benchmark 2017 is the fifteenth nationwide benchmarking study on the business aspects of physical therapy practice. We now have completed studies from 1,577 locations across the country. Click here to learn more about the results of the most recent study.
How often is the survey performed?
PT Benchmark will be conducted every three years. So, if you miss PT Benchmark 2017 you must wait until 2020.
What type of information is being collected?
This is a comprehensive review of the business aspects of PT practice unlike any other available to physical therapists. PT Benchmark 2017 covers fiscal year 2016. The survey includes detailed information on charges, collections, expenses, productivity, and employee benefits. The survey is completed using a user-friendly Excel® workbook with clearly defined questions and entries. Upon completion participants email the password protected survey directly to Chuck Felder at HCS Consulting.
How will PT Benchmark 2017 benefit me?
You will be able to compare your productivity and financial performance to that of similar businesses in your region. The data and comparisons provided will help you determine areas for improvement. Knowing the “gold standard” will help you fine tune your business to improve its performance. It will also help you improve your financial management, potentially saving thousands of dollars which flows directly to the bottom line.
Why should I participate?
You’ll finally be able to pinpoint inefficiencies as well as identify your best practices. You’ll gain control and stop wasting time and money on poor practices.
What if I don’t participate?
Only study participants receive customized reports comparing their performance to that of their peer group, giving them a tremendous advantage in today’s highly-regulated, competitive economic environment. Now, more than ever, you need the right information to make the right decisions for your practice.
This is very private information, how do I know it will be handled confidentially?
HCS Consulting is committed to maintaining confidentiality of all data. Only the lead investigator will have access to all the data. Personal identifying information will be carefully guarded. Recipients will only receive aggregated data. HCS Consulting maintains physical, electronic and procedural safeguards to protect the confidentiality of all data.
Is this legal? What about antitrust issues?
The Justice Department has published an opinion that provider participation in exchanges of price and cost information is permitted provided the exchange meets specific criteria. This survey meets all of the following criteria to qualify for the Antitrust Safety Zone.
- The survey is managed by a third-party (e.g., a health care consultant)
- The data is more than three months old
- At least five providers participate and no individual provider’s data represents more than 25 percent on a weighted basis
- The data is sufficiently aggregated such that it would not allow recipients to identify the prices charged or compensation paid by any particular provider
When is the survey being conducted?
The data collection period ends March 31, 2017. To be included in the study your data must be submitted by March 31, 2017.
What time period is being studied?
Data from your fiscal year of 2016 is being studied. Most physical therapy practices operate on a calendar year, therefore for this study the year end would be December 31, 2016. If your corporation operates on a fiscal year, you will use the ending date for your fiscal year, for example June 30, 2016.
What data do I need to complete the survey?
You will need the following data from 2016:
- Year end financial statements.
- Year end billing software reports showing accounts receivable summaries
- Year end payroll reports
- Your lease
- Productivity statistics, new patients, visits, cancels, no-shows, etc.
How is the data submitted to HCS Consulting?
All data is entered into specific locations on a password protected Excel® workbook.
How long will it take to complete the data entry?
Previous participants typically spend 2 to 3 hours entering data, with many taking less than 2 hours.
What type of results do I get?
Each participant receives a customized report containing information on the whole study population, a customized section showing their results compared to that of their peers according to dollar volume, and a report on trends in the industry.
How long will it take to get my results?
Expect to receive your results in June, 2017.
How can I participate?
Contact Chuck Felder at cfelder@HCSconsulting.com or call 951.273.7748 to place your order and to receive the Excel® workbook.
How much does it cost?
In-depth benchmark studies like this typically cost $1,000 or more in other industries. PT Benchmark 2017 is priced at only $545 to encourage extensive participation in this landmark study for physical therapy practices.