1. Budget and Finance Managing Finances for PT Services

2. Physical Therapy Finances Is it O.K. to make a profit from providing health care services?

3. Expenses Direct expenses- salaries, benefits, supplies Indirect expenses- building maintenance, managers Fixed costs- rent of building, insurance Variable costs- linens, medical supplies Semivariable costs-telephone service Total cost- sum of fixed, variable, and semivariable costs

4. Revenue Charge master/fee schedule -what treatments costs Gross revenue- volume * price Net revenue- payer mix and volume, price Deductibles and co-payments Supplies- can no longer sell equipment that needs to be provided by durable medical equipment

5. Financial Reporting Statements of performance and position Can be used to compare actual performance to projected performance Monthly vs. Quarterly vs. Yearly Access and use of financial information has historically been limited to management

6. Performance Indicators Volume –Referrals –Scheduled treatments –Completed/billed treatments (Productivity) –Visits –Case mix

7. Performance Indicators Revenues –Net revenue per referral –Net revenue per visit –Revenue generated vs. revenue billed

8. Performance Indicators Costs/Expenses –Labor distribution Regular hours Overtime hours Education hours Personal leave hours –Employee benefits –Operating expenses

9. Performance Indicators Efficiency –Man hours/stat –Billed units of service per visit