Medical Billing for Physical Therapy: Understanding Reimbursement Variations
Medical billing for physical therapy can be a complex puzzle, with various procedure codes representing the services provided. One intriguing aspect that leaves many puzzled is the significant variation in reimbursement rates across different codes. Why do insurance companies pay more for some procedure codes than others? Let’s get some understanding around the WHY.
Complexity of Services in Physical Therapy Billing
Procedure codes are designed to reflect the complexity and intensity of the services rendered. Some physical therapy interventions demand specialized skills, advanced equipment, or extended treatment sessions, leading to higher reimbursement rates. Insurers recognize the additional resources required for these procedures, reflecting the intricacies involved in delivering comprehensive physical therapy care.
The bottom line: Insurance companies pay more for the procedures THEY value.
Time and Effort in Physical Therapy Services
Reimbursement rates often correlate with the time and effort invested in a particular procedure. Procedures that necessitate prolonged sessions, extensive assessment, or other expertise may command higher payment. Insurance companies acknowledge the commitment of therapists and the importance of ensuring patients receive the time-intensive care they need for optimal recovery.
The bottom line: In general, the more time you spend with the patient, the more insurance companies pay you, with the exception of untimed codes and day rate payers. However, this does not explain why timed codes are reimbursed at a different rate…🤔
Evidence-Based Practices in Physical Therapy
Insurance companies prioritize evidence-based practices that have demonstrated effectiveness in achieving positive patient outcomes. Procedures supported by robust clinical evidence and endorsed by professional associations may receive higher reimbursement, as insurers acknowledge the value of these proven interventions in promoting patient well-being. Procedures with minimal backing from the literature are not reimbursed well, or not at all.
The bottom line: If research says there is minimal evidence to support the procedure, it’s not covered.
Geographic Variances in Physical Therapy Billing
Reimbursement rates can vary geographically due to differences in the cost of living, overhead expenses, and regional healthcare dynamics. Providers in areas with higher living costs may receive increased reimbursement to compensate for the elevated operational expenses associated with delivering quality physical therapy services.
The bottom line: Nothing you can do about this, so no sense in worrying about it. Just know what the highest reimbursed codes are and code appropriately.
Wrapping It Up: The Importance of Insurance Knowledge in Physical Therapy:
Look… I know this is not super fun and you didn’t learn this in PT school, but ignoring the importance of knowing what your insurance carriers value comes at your peril. With decreasing reimbursement and increasing costs of doing business, a shift in focus to this in order to improve your revenue per visit is a must.