Her Practice Made MORE Money, But Profits Fell to 2%

What happens when your healthcare practice keeps growing, but your profits disappear? Orit Hickman built Pain Science Physical Therapy into a million-dollar practice. One year, the business generated more than $1 million in revenue with roughly 12% profitability. The following year, revenue increased—but profit dropped to just 2%. Something had to change. In this episode of the Financial Beast Podcast, Orit explains how declining insurance reimbursements, rising salaries, increasing administrative costs and the growing burden of dealing with insurance companies pushed her physical therapy practice toward an unsustainable business model. Her solution was dramatic: drop roughly 65% of the practice's insurance contracts and begin transitioning toward a fee-for-service model. Today, the practice is seeing fewer patients while making more money. In this conversation, you'll discover: • How a growing practice can become LESS profitable • Why insurance reimbursement stopped supporting Ari's model of care • How administrative costs quietly consumed practice margins • Why she dropped 65% of her insurance contracts at once • The emotional difficulty of dropping Medicare • How she transitioned back from 45-minute to one-hour appointments • Why cash pay allowed her to rethink compensation for her providers • How she's transitioning toward a fully fee-for-service practice • Why practice owners need to put financial stability first • How Ari transitioned her identity from clinician to business owner • Why seeing fewer patients can sometimes produce a stronger business • How telehealth could allow Pain Science Physical Therapy to expand nationally If you're a physical therapist, veterinarian, optometrist, dentist, chiropractor or other healthcare practice owner dealing with shrinking reimbursements and rising expenses, Ari's experience offers an important lesson: More revenue doesn't necessarily mean you're building a healthier business. 🎙️ Subscribe to the Financial Beast Podcast for financial strategies, practice growth insights, exit planning and wealth-building strategies specifically designed for healthcare practice owners. CHAPTERS: 00:00 When Practice Revenue Goes Up but Profit Goes Down 01:39 Escaping the Insurance Reimbursement Trap 03:19 Why Orit Hickman Started Her Physical Therapy Practice 05:25 Growing From Clinician to Practice Owner 08:17 COVID, Rebranding & Declining Reimbursements 10:36 The Identity Shift From Practitioner to Owner 12:41 Why Practice Owners Must Prioritize Profitability 17:13 Getting Out of Patient Care Without Losing Quality 20:35 The Problem With Insurance-Based Physical Therapy 23:06 $1M+ Revenue but Profit Falls From 12% to 2% 27:21 Making the Decision to Leave Insurance 30:43 Dropping 65% of Insurance Contracts 32:58 Transitioning to a Cash-Pay Physical Therapy Practice 34:11 Seeing Fewer Patients and Making More Money 36:04 The Plan to Become Fully Fee-for-Service 40:07 Money Lessons From Building a Healthcare Practice _________________________________________________________________________________ Want to schedule a free consultation? Visit www.econologics.com or call us at (727) 588-1540 or schedule directly at: https://econologicsfinancialadvisors.com/complimentary-consultation/   Get Social With Us Website: https://www.econologicsfinancialadvisors.com  LinkedIn: https://www.linkedin.com/company/econologics  Facebook: https://www.facebook.com/econologicsfinancial  Instagram: https://www.instagram.com/econologicsfinancialadvisors  X / Twitter: https://x.com/FinancialBeasts  Vimeo: https://vimeo.com/econologics  🔒 Disclaimer Econologics Financial Advisors, LLC (‘EFA’) is registered with the Securities and Exchange Commission as an investment advisor. (Such registration does not imply a certain level of skill or training.) EFA provides investment advisory services only in states where it is permitted to do so under state laws and only to the extent permitted thereby. This communication is not an offer to sell or effect any transaction in securities. Neither EFA nor its affiliates provide legal, tax or accounting advice. Please consult a qualified attorney or accountant. Results are not guaranteed and will vary depending on the specific circumstances of each individual and on other factors. Full disclosure: https://econologicsfinancialadvisors.com/legal-disclosures/