Running a physical therapist practice has lots of moving parts that go beyond just providing good services. From marketing to staffing, current technology to building maintenance, an owner has to learn how to juggle it all. And nearly every aspect of owning a business comes down to money. But what if you’re losing more than you’re making?
Learn about how you can determine the best time to sell your physical therapy practice.
Determining when you should sell your physical therapy practice based on the value
There are tens of thousands of physical therapy practices across the United States. Back in 2021, there were over 30,000 clinics open across the country. But trying to determine if you want to keep being the owner of one of those many physical therapy practices isn’t easy.
Knowing the value of your physical therapy practice is essential in planning its future. If the value doesn’t show a long-term positive outcome with your current trends, then it may be time to sell your physical therapy practice.
There are quite a few factors that determine your practice’s value including:
- Cash flow.
- Building and staff costs.
- Annual number of new patients per year.
- Average number of visits per patient.
- Payor mix and average patient income.
Is it a good time to sell your physical therapy practice?
Deciding to sell your physical therapy practice doesn’t happen overnight, and that’s because there are a few questions you have to ask yourself. If your answers to these questions are relatively negative, it might be a good time to sell your practice.
- How is your current profitability? — The market is constantly changing, and not always for the better. Inflation not only affects the cost of your equipment, space, and supplies, but it also hurts the pockets of your customers, who may not have the money to spend on your services. Looking at your profit margin in the current market is essential for determining your longevity.
- How is the physical therapy industry changing? — Similar to knowing about the current market for your industry, it’s also important to acknowledge the future. You need to consider if you can afford to make changes to your practice in order to work with the evolving needs of your patients and the economy.
- Do you have the means to grow? — Every physical therapy practice owner aims to grow their number of patients and, oftentimes, the number of locations they have as well. If you’re struggling to grow at the pace you want, you could exhaust all of your resources, leading you to have to sell your practice.
Alliance can help you figure out the right time to sell your physical therapy practice
It’s not an easy decision to give up your practice, but it may be the right one. If you’re struggling to determine the best time to sell your practice, we are here to help you figure that out.
Contact our team today for more information about how we can help your practice or to find out how you can join our partnership in care.