Potential Destination of Corporate Earnings Employee Bonus (Christmas, performance, review) Employee Raises Inflation Index (Cost of Living) Renovation of offices Equipment Purchases Additional Personnel Hiring Business Loan Interest Payments Corporate Taxes on Earnings Share Holder Distributions

Cost of PTA’s and Techs PTA salaries $ Benefit package $30, Total$ Tech salaries $ Benefit package $37, Total $288, Total Cost $520, Average Cost per Month $43,411.00

PTA Units to Therapist How are units computed? Total PTA units for PT divided by total PT working hours in clinic (PTA conversion factor) Individual PT working hours x PTA conversion factor

What Happens to a Charged Unit? Average Unit Charge $41.00 Average Reimbursement/Unit Charge $21.00 Profit Margin/Unit Charge (10%) $2.10 After Taxes $ =$1.26/Unit Uses of $1.26/Unit; Renovations, Bonuses, Raises, New Equipment Purchases, Inflationary Index, Corporate Loan Interest Payments, Additional Personnel Needs, Share Holder Distribution

Cost Analysis State to State Maryland – Gross = $185 visit, average visits/referral = 12.7, average units 4.0 Delaware – Gross = $198 visit, average visits/referral = 13.5, average units 3.9 South Carolina – Gross = $181 visit, average visits/referral = 9.2, average units 4.0 Industry Standard Range - $ visit, average visits/referral =12.0, average units 3.8

JUNE 2006

Potential Cost Reducing Measures Increase/change PT/PTA scheduling hours Cessation of all company bonus programs Reduce employee payroll/staffing (salary breakdown for PT/PTA’S for the year 2005 was $1,192,000.00, remaining staff $ ) Discontinue continuing education funds to an As Needed basis. Change employee health insurance to a less preferred/less expensive plan Discontinue employer matching 401K Restrict ordering of supplies Discontinue upgrading of equipment and purchases Cancel all 2006 employee raises and consider salary reduction plan

10 Interventions That Will Improve Revenue Increase Patient Volume Increase Units Charged per Hour Choosing Optimal Units From Patient’s Treatment Increase Patient Treatment Hours Flexibility of Schedule to Accommodate Patient Needs Improve Documentation to Eliminate Denials Proper Communication between PT/PTA regarding treatment as well as documentation of treatment Consider un-timed modalities in addition to timed modalities Utilize Billing and Front Office Staff Expertise Remember to charge for DME/supplies of any kind (splints, heel lifts, phono/ionto pads, pool shoes, theraband, putty, electrodes)