Valley Rehab Center - Breakthrough Case Study
How Valley Rehab Center Increased Revenue by 38% Year Over Year
PT Therapist & Practice Owner Theresa Palkovic
After implementing Max Value, this two-location physical therapy practice increased its revenue by 38% year over year.
Going from the role of clinician to business owner can be a daunting challenge, and it’s a move that Theresa Palkovic never thought she’d have to make. But having been laid off from what she thought was her retirement job, she found herself opening the doors to her own practice—and dealing with many of the financial pitfalls that came with it.
Theresa’s practice and business situation were unique: she started from the ground-up almost debt-free. But that didn’t make turning a profit any easier for her, which is why she invested in Max Value and started watching her numbers soar.
Read Valley Rehab Center & Theresa's Breakthrough Case Study Transcript
Before Max Value: “We Were at Max Capacity, but the Numbers Didn’t Match Up.”
As an older physical therapist at the top of her pay scale, Theresa was struggling to find a job in her area. Moving was out of the question, especially since her husband had a well-established business in the area. When Theresa lucked out on a chiropractor friend that was willing to offer his space and equipment, she jumped on the opportunity.
“I basically started my business without any real debt. I used his space to build up my clientele in 2013, and by 2014, I couldn’t see any more patients because there weren’t enough hours.” Theresa was using the chiropractor’s extra space and treating every hour he wasn’t there, often working as late as 9 o’clock at night and some weekends.
In order to grow, Theresa moved into a new space, and by 2017, she and her team were oversubscribed again to the point where growth wasn’t possible. They moved for the second time in 2018, but even with a 38% growth that came from the move, their revenue per patient was spinning its wheels at around $68 per visit. Though the patient volume had increased, the revenue was offset by having more overhead, including therapists’ salaries.
“I couldn't see all those patients myself. As we grew, we had to hire staff. So, the salaries were getting to be a burden. We weren't getting the return on our investment.”
When Theresa found the Max Value course from Breakthrough, she knew this was her chance to learn how to make her other metrics move in the same direction as her patient numbers.
Like many Breakthrough clients, Theresa first implemented Growth X and attributes her rapid growth to the platform, increasing at a rate of 38% year over year.
However, that growth ended up being overwhelming for Theresa and her team from a financial standpoint. She didn’t know how to scale up with her therapists and clinic at large, which put a burden on the business. Even though they were doing well, Theresa realized the practice wasn’t as profitable as it should be.
Easing the Transition from Clinician to Business Owner
As a self-proclaimed accidental entrepreneur, Theresa loved that the Max Value course came in a series of modules that taught her how to manage her clinic from a business perspective, not just as a clinician. Each module dove deeper into the metrics that she previously didn’t know what to do with, helping her turn those metrics into plans, goals, and objectives. Now, she can also better identify leaks in the pipeline and know how to scale her business.
"It's been a transition for me, from clinician to business owner. Now I have a better handle on how to build or how to scale from this point on. It's helped me to kind of pull back a little bit, regroup, and then move forward.”
Theresa had the growth she had always envisioned, but with that growth, she needed a clear direction on where to go next. Having been a physical therapist for more than 30 years, she is four years from retirement and is already planning her exit strategy. Her ultimate goal is to either sell the practice or transition it into an employee-owned practice.
“I want to be able to have either some kind of income from my business that can take me through my retirement, or get a good sale on my business.”
After Max Value: Increased Revenue and Patient Numbers
Having taken the Max Value Course, Theresa was able to gain more insight into her clinic space, productivity, and potential leaks in her Accounts Receivable processes, all of which impact her profitability.
After implementing Product X, Theresa took on some new space but realized she wasn’t doing the best job of filling it. She’s re-examined her therapists’ schedules to ensure a higher level of productivity rather than being “busy.”
“When you start looking at the numbers, the numbers don't lie. I was able to make adjustments in my visit schedule so that we actually got rid of a whole therapist's salary and are still seeing the same amount of patients. So, that was really significant.”
Theresa also has a better handle on where issues exist in AR since reimbursement is her main issue. She recognizes that one thing they weren’t doing that they should be doing is collecting money upfront. Though they collect co-pays, they don’t have a practice of collecting on deductibles or coinsurance, leaving them with a high AR of patient balances, which they have a hard time recouping. The Max Value Course helped them to make changes to their processes, including front office and billing procedures and better follow-up.
“In actuality, we've probably increased our revenue per visit by about almost $20 from where I was when we first started Product X. So, that's made a huge difference.”
Final Thoughts: More Revenue, More Profit, More Confidence
Theresa acknowledges that she came into her role as a clinician, not a business owner. But that didn’t prevent her from taking the necessary steps to growing a successful PT practice, including investing in the Max Value Course.
“I would recommend it to any owner because we're clinicians. Starting my business when I was 55 years old was really overwhelming. You don't know what you don't know until you find out what you don't know. And the Max Value Course helped me to find out what I didn't know and what I still needed to learn. All of the tools are there. I don't have to go research it. I don't have to go teach myself finance. It's there for me.”
Implemented Breakthrough's Product X & Max Value PT Marketing Systems
Increased Revenue by 38% Year Over Year
0 to 8 employees in 11 months!
$400,000 in revenue for our first year!
"We've probably increased our revenue per visit by about almost $20 from where I was when we first started Product X!"
“I would recommend it to any owner because we're clinicians. Starting my business when I was 55 years old was really overwhelming. You don't know what you don't know until you find out what you don't know. And the Max Value Course helped me to find out what I didn't know and what I still needed to learn. All of the tools are there. I don't have to go research it. I don't have to go teach myself finance. It's there for me.” - Theresa Palkovic
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