Referral for Profit
home payer the right network referral for profit

Which physical therapist delivers the best overall value for patients, employers and insurers — one employed by a physician, or one who owns his or her own practice?

When physicians own physical therapy clinics and refer their patients to those clinics, there is an inherent conflict of interest because of the referral-for-profit issue. Referral-for-profit has wide-ranging effects that negatively impact patients, payers and the healthcare community at large.

The consequences of physical therapy referral for profit are costly. Referral for profit services translate into higher healthcare costs for both consumers and payers because they generate more utilization and higher charges than do autonomous practitioners.

The data regarding referral for profit services speaks for itself:

Patient care may also suffer in physician-owned clinics. Both licensed therapists and non-licensed workers in those settings spent less time with each patient, indicating that a lower level of care is provided, according to a Florida study, which also found that assistants are substituted for licensed therapists more often in physician-owned facilities.

Substantial evidence supports the belief that the independent practitioner delivers better quality of care, more cost-effectively, than therapy provided in clinics owned by physicians. That is why PTPN includes only therapists who own and operate their own clinics.