Are you looking at the possibility of additional reimbursement cuts this year, especially from Medicare?
The good news was that the 9% payment cut for physical therapist services under the Medicare Physician Fee Schedule was lowered to an average of about 3.6%. But the flip side is that payments are still going down, not up. With continued financial pressures, looking at ancillary sources of revenue may be a good idea.
Adding retail in therapy may be one way to add cash-based revenue. This offers patients the very products that therapists prescribe so that they don’t have to go elsewhere to buy them, while ensuring that they buy the right product and avoid mistakes in the purchase. Also, “Retailization” of Healthcare has been an ongoing industry-wide trend. Enabling patients to buy the products they need right in the clinic would be in line with the overall industry trend. It could perhaps even be argued that a therapy clinic that includes product retail may look more inviting and friendly to patients.
The retail push would also be supportive of the prevalent move to a cash-based practice to counter payer reimbursement challenges.
Setting Up Systems & Processes
On the other hand, a physical therapy clinic is a practice not a retail shop and sales is not what therapists set out to do. Going retail implies that the practice will need to think through some basic retail merchandising questions for example what products to keep in stock and what to dropship, how to organize the display, inventory management, and so on. For reference, in dropshipping, products are not held in stock and instead directly shipped by the vendor to the patient.
You will need to set up systems and processes to identify how products are performing, manage inventory across locations, recommend the right products, optionally dropship products, and stay on top of revenues and margins.
From Point Of Sale to Inventory Management to Reporting & Analytics, the Curative Retail Management System will do all the heavy lifting for you so that you could continue to focus on your patients.
End of the day, you will be working toward ensuring a successful practice that is focused on patient care, driven by automated systems and processes, and based on a financial model that raises profitability.