Why should Remote Therapeutic Monitoring (RTM) matter to practice owners who eventually want to sell their practice?
SaRA Health teamed up with Michael Pikeutoski of Physical Therapy Practice Sales and Consulting to explain why, in short, RTM can improve key metrics to increase your overall sales price.
We came up with the top three metrics that SaRA Health has seen improve with their clients, combined with what Michael is seeing resonate with buyers.
Improved Revenue/Reimbursement per Clinician: Underproductive staff can add risk from the buyer’s perspective and reduce multiples being offered. SaRA Health has seen in some cases a single provider add thousands of dollars in additional reimbursement on a monthly basis.
Improved Patient satisfaction and outcomes: Outstanding outcomes demonstrates well trained staff, which can add value for a buyer. SaRA Health has seen referring providers increase referrals because of the 65% higher compliance to home programs, as well as, the positive anecdotal feedback from their patients. Additionally, 82% of SaRA Health patients report an increased perception in the value of their therapy which prior research directly relates to improved outcomes.
Improved Flexibility for Clinicians: Staffing remains the #1 issue for most owners and buyers. High turnover rates increase risk from the buyer’s perspective. With a full grasp on RTM, practice leaders can begin to find new ways to provide flexibility for their clinicians, reducing turnover and therefore risk for a buyer.
So what could an increase to each of these numbers mean for a practice owner?
$12,000 in additional EBITDA per provider will add many times more to the purchase price depending on the multiples applied to your practice. Additionally, improving patient outcomes and loyalty, as well as, reducing staffing risk could mean a higher multiple at exit.
Interested in learning more about how RTM could impact your practice’s eventual selling price? Please reach out to either Michael or I on here, leave a comment, or visit our websites.
