Although a loaded question, the answer is a definitive YES. However, this route is not for everyone. In this article, we will explore who would be appropriate to dive right into a cash practice immediately after passing the board exam.
First, let’s explore the reasons someone would open an out-of-network practice.
- You get to spend the full session, one-on-one with your client.
- You can make your own schedule.
- Other than taxes, the money you make stays in your pocket.
- Your treatment options are not limited to what insurance will cover!
- You receive payments up front, instead of waiting on reimbursement.
- Documentation is significantly less time consuming.
- You can choose which population that you work with.
- In some cases, 15-20 clients per week can make a viable practice.
Now let’s take a look at why it is plausible for a new graduate to open their own cash practice.
- The majority of cash practices have an extremely low cost of entry. Buy a table,linens, cleaning supplies, and find a gym that will allow you to rent a room. Set yourself up as an LLC and, boom, you have a practice. Rent in this type of facility will run anywhere from $300 to $1000, depending on location. You could easily cover your first 6 months for under $6000.
- When you first graduate, you will likely be single, not have children, and have minimal bills to pay. This will allow you to focus on professional development, marketing, and community integration in order to build your client base and set yourself up for long-term success. The stress will be reduced in the early stages without mouths to feed. You may even be able to live in your parents basement until the practice is up and running.
Well that sounds pretty good, right? Now it is time for us to dive into why a new grad should NOT open their own practice.
- No way to sugar coat this one. It is HARD to build a sufficient caseload, especially for an inexperienced therapist. I am a board certified Orthopedic Clinical Specialist and a Fellow of the American Academy of Orthopedic Manual Physical Therapy and I still had a difficult time in the beginning convincing potential clients that my services were worth the money.
- In order to be successful in a cash practice, you have to be extremely confident in your skill set, which is rare for a new grad. Would you pay for your services? If the answer is no, it is not time to open a practice.
Okay, so who should take the plunge into the risky business of cash PT right out of school? It is probably best that you check at least one of these boxes.
- Do you have previous experience with a certain patient population in the location you would open a practice? Prior to or during physical therapy school, were you an athletic trainer, personal trainer, massage therapist, health coach, or something similar? If so, you may already have an initial client base that you could contact and offer your new services.
- Do you have expertise or personal experience in a certain area that would allow you to take over a niche population? For example, are you a scratch golfer, a great runner, a powerlifter, or a Crossfitter? These are often tight-knit communities and your expertise in the area will quickly be recognized which could allow you to build a client base more quickly. From there, word-of-mouth could bring you family and friends.
- You got a problem? Yo, I’ll solve it. Does your area of expertise or interest fill a gap in what is offered within the community? Pelvic health and sports specialists are good examples.
- Are you well-known within your community? Were you a local high school or college sports star? Were you or your family highly involved in the community? Again, this is an easy way to quickly build a caseload.
- Do you have a clinical mentor who is willing to assist you in developing your clinical skills
I did not open my practice immediately out of physical therapy school. I would not have checked any of the above boxes at that time. It did not become apparent to me that this was the direction I wanted to go until I finished the Orthopedic Residency program. If you do not think you are ready, you can always come back to this idea. I will post follow up articles with advice on how to prepare yourself.
If you are certain with the direction you want to take your career and are confident in your clinical skills and ability to market yourself, then you are a prime candidate to jump right into entrepreneurship. The road is bumpy but manageable and can be highly rewarding!
Listed below is my contact information and how to find my practice. Feel free to reach out to me with questions or for mentorship on the process.
Website: MoveRightPT.com
Social Media: @MoveRightPT
Email: DrSmith@MoveRightPT.com
