The concern surrounding physical therapy Medicare cuts is a hot topic in the practicing PT community right now. If you already have an active practice (or are considering how to start one), you’ve likely been keeping a close watch on any news related to medicare payment cuts in 2022.
While therapists and their supporters fought hard against the proposed 9% cut of 2021 and managed to reduce that figure to 3.3%, a new wave of budget cuts is expected to continue in 2022 without intervention from Congress.
Expect Continued Cuts and Changes to Physician Fee Schedule
With the CMS shifting funds to focus on E/M services and continued reductions planned for outpatient therapy (by as much as 15%), many private practices wonder what to expect under the 2022 Medicare proposed rules. Unfortunately, the threat of cuts and the impact on physical therapists traces its roots back to the Bipartisan Budget Act of 2018 – the fallout of which therapists have been dealing with ever since.
The reality for private practices like yours is that the payment landscape for health services is increasingly moving away from a volume-centric structure (fee-for-service payments) and towards one that focuses heavily on patient outcomes (value-based or alternative payment models).
This change in payment focus means that PTs that want to stay competitive and continue providing the best care MUST change their approach alongside these changes. If you want to survive and thrive through what’s coming, you’ll need to re-evaluate your business model from the ground up.
Innovation Now Provides a Buffer Against Future Changes
This is an opportunity to innovate your practice and start incorporating cash-based services – therapeutic add-ons like the NEUBIE, dry needling and massage therapy to name a few – that help set your practice apart and diversify your income. It also means potentially adding new talent to your team to provide this enhanced level of care.
When the Bipartisan Budget Act of 2018 passed, no amount of organizing efforts and outrage halted the inclusion of the PTA differential that now threatens practicing PTs. Congress was given multiple alternatives and opportunities to alter the policy, and refused. You can’t assume help is coming – adapting to future changes now is your priority when it comes to keeping your practice open.
Your Solution to the 2022 Proposed Medicare Payment Cuts
Fortunately, you don’t have to reinvent the wheel or learn how to do all of this on your own. At MEG, we saw increased Medicare payment cuts on the horizon – and we’ve already developed virtual training courses designed to help your practice face what’s coming.
- If you’re a new practice, our Startup Accelerator Program will help you structure your business with solutions for physical therapy Medicare cuts built in.
- If you’re an existing practice, you’ll want to explore our Scaling and Expansion Program for guidance on how to start shifting your business to include cash-based revenue streams.
If your doors close because of the 2022 Medicare proposed rule, you can’t continue providing the kind of care and services your patients desperately need.
It’s our job to help you keep those doors open by providing training that will keep you from being reliant on Medicare reimbursement in 2022. Get started by speaking directly with one of our coaches on what your next step should be or explore the courses MEG Academy has to offer.