Physical therapy helps millions of Medicare beneficiaries recover from injuries or improve their mobility. Access to physical therapy may decrease due to recent changes to Medicare policies and reimbursement rates. These Medicare cuts can make it more difficult for medical practices to be profitable and provide high-quality care without assistance from physical therapy billing services.

In 2023, Medicare reimbursements for physical therapy services were cut by 2%. This was outlined in the Omnibus Budget Reconciliation Act of 2023, which was passed in December 2022. Physical therapy practices receive less money for each Medicare beneficiary that they treat.

The Impact of the 2023 Medicare Cuts

There are many ways that the 2023 Medicare cuts can affect physical therapy practices and their patients, including:

Increased Financial Strain

Physical therapy practices may have to make financial adjustments like expense and employee cuts due to the 2% cut in reimbursement. Practices that were already struggling because of the pandemic or those that do not have as many patients will likely feel the strain more than other practices.

Inability to Handle High Patient Loads

If the Medicare cuts force practices to reduce their services, it may cause them to lower their number of patients. This can also impact some patients’ access to care if a practice cannot take on more patients or the patient cannot afford the services that they need.

Lower Quality of Care

With a cut on reimbursement, physical therapy practices may have to take measures that lower their quality of care. This includes reducing the number of visits that a patient can take, providing shorter treatment sessions, and being forced to hire less qualified staff in order to save money.

Physical Therapy Practices and Solutions

It’s possible that these cuts won’t go away unless there is increased government funding or reform of the Medicare fee schedule. Practices can petition the government for change or provide information through blogs and social media. Here are some things that practices can do to mitigate the negative effects these cuts are having on their business:

Improve Their Physical Therapy Billing Process

Improving your physical therapy billing process can help you take control of your revenue cycle management. This verifies that the practice is being fully reimbursed for its services and that there aren’t missed payments. can help you remove the guesswork from your billing services.

Focus on Profitability

Focus on profitability by developing a consistent billing process and transparent reporting. Practices can focus on reactivating patients or recommending additional services to their current patients as well. Verify that your payment services are as up-to-date as possible. Listen to feedback from patients based on your billing process to encourage customer satisfaction.

Improve Your Physical Therapy Billing Process

If you own a physical therapy practice, you are likely experiencing the effects of the 2% Medicare cuts. Upgrading your physical therapy billing process can help you stay profitable and improve your revenue cycle management. Schedule an analysis with today to see how we can help you recover from the recent changes.