E635 | Lessons From A 600 Million Dollar PT Practice

In this episode, we dive into the key insights from ATI Physical Therapy's recent quarterly investor report. ATI is a prominent publicly traded physical therapy company that is required to disclose financial information each quarter. The performance of their stock depends on whether they beat, meet, or miss projections made by analysts.

During the discussion, we learn that on average, ATI clinicians see around 9.5 patients per day, with an average revenue of $105 per visit. However, ATI states that this revenue per visit is increasing. Based on these numbers, the average ATI clinician generates approximately $1000 in gross revenue per day and around $240,000 annually, assuming they take some time off.

With an annual gross revenue of around $620 million, it is evident that ATI must have a significant number of clinicians. However, ATI also faces challenges as they experience an annual staff turnover of around 20%, including their front desk staff. This high turnover rate is a concern for the company as training replacements can be quite expensive. Therefore, reducing turnover is a key focus for ATI.

In contrast, the discussion also highlights the advantages of smaller private practices. These practices may be able to generate around $200 per visit on average, requiring fewer patients per day to earn similar revenue.

Additionally, smaller practices have the advantage of offering a better work culture and potential income stability compared to larger companies. To retain staff, it is important for these practices to treat their employees well and mitigate the risk of overworking new clinicians.

If you're interested in gaining insights into the operations of a major physical therapy company and how it compares to smaller practices, this episode is definitely worth a listen. We analyze the advantages of reimbursement rates, retention strategies, and the importance of avoiding overworking new clinicians.

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Podcast Transcript