Healthcare
Business Funding for Physical Therapy Practices
Physical therapy practices depend heavily on insurance reimbursement, and Medicare and private payer rates have been declining for years. That means you need higher patient volume to maintain revenue, which requires more space, more therapists, and more equipment. The typical PT clinic needs $100,000 to $300,000 in startup capital between the buildout, equipment, and working capital to survive until insurance payments start flowing.
Common Uses
What Physical Therapy Practices Use Funding For
- Purchase rehab equipment including treatment tables, parallel bars, and exercise machines
- Build out a clinic with private treatment rooms, an open gym area, and a reception desk
- Cover payroll for physical therapists and PTAs while the patient schedule fills up
- Invest in practice management software and outcomes tracking systems
Funding Options
Best Funding Types for Physical Therapy Practices
SBA 7(a) Loan
Covers startup buildout, equipment, and the working capital needed to operate at a loss during the first 6 to 12 months. PT practices eventually produce strong cash flow, so lenders view them favorably for longer-term SBA financing.
Equipment Financing
Finance treatment tables, ultrasound therapy units, electrical stimulation devices, and gym equipment separately from your buildout loan to reduce the total SBA amount needed.
Medical Practice Line of Credit
Manage the gap between providing treatment and receiving insurance reimbursement. PT practices often wait 45 to 60 days for payment, and a credit line prevents that lag from disrupting operations.
What Lenders Look For
Qualification Notes for Physical Therapy Practices
Related Industries
Related Healthcare Funding
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