2nd Edition

Business Fundamentals for the Rehabilitation Professional

By Tammy Richmond, Dave Powers Copyright 2009

    The world of business is ever changing, with much of the available information becoming quickly out-of-date. Business Fundamentals for the Rehabilitation Professional, Second Edition keeps pace with this changing world and provides the health care professional with the latest information to answer the “what, where, how, and when” questions that come up when transforming a health care practice idea into a successful business.

    With this updated Second Edition, Tammy Richmond and Dave Powers take the health care professional to the next level of implementing successful business operations by the introduction of applications of management principles, as well as implementation of evidence-based practice guidelines and basics to billing and coding documentation. Business Fundamentals for the Rehabilitation Professional, Second Edition addresses how to identify emerging business opportunities, legal and health care regulatory issues, market research and development, and health care operations.

    New features in the Second Edition:

    • New Management and Operations checklist
    • An in-depth look at reimbursement, billing, and financial survival
    • Strategic target market promotions
    • Updated templates and tools
    • Review questions
    • Downloadable worksheets available with text purchase

    Keeping the user-friendly format of a workbook, Business Fundamentals for the Rehabilitation Professional, Second Edition is the perfect resource for master and doctorate level students preparing for the professional world, as well as rehabilitation professionals and entrepreneurs interested in obtaining knowledge in starting up, managing, expanding, or understanding the health care practice system.

    What will you learn?

    • How to create a vision and mission statement
    • How to develop a business and marketing plan
    • How to manage finances within the scope of the practice
    • What are your local state and federal regulations
    • What are the small business guidelines




    About the Authors

    Contributing Authors


    Chapter 1 Getting Started

    Tammy Richmond, MS, OTRL

    Step 1: Perform Self Assessments and Practice Assessments

    Step 2: Identify Your Business Opportunities

    Step 3: Analyze Your Business Opportunities

    Step 4: Create Vision, Value, and Mission Statements

    Chapter 2 Business Structure

    Tammy Richmond, MS, OTRL

    Step 1: Determine Your Tax Status

    Step 2: Determine Your Legal Structure

    Step 3: Create Your Organizational Structure

    Step 4: Select Your Business Name

    Chapter 3 Business Plan

    Tammy Richmond, MS, OTRL

    Step 1: Develop Your Business Plan

    Step 2: Secure the Details

    Chapter 4 Marketing Plan

    Tammy Richmond, MS, OTRL

    Step 1: Analyze Your Market

    Step 2: Create a Marketing Plan

    Step 3: Implement Your Marketing Plan

    Step 4: Assess and Redirect Your Market Strategies

    Chapter 5 Implementation

    Dave Powers, PT, DPT, MA, MBA; Tammy Richmond, MS, OTRL

    Step 1: Gather Advice and Consultation From Experts

    Step 2: Complete Your Operational Infrastructure

    Step 3: Build Your Management Skills and Standards of Care

    Step 4: Promote Professional Competency and Code of Ethics

    Chapter 6 Financial Management

    John Richmond, CLU, ChFC; Tammy Richmond, MS, OTRL

    Step 1: Understand Accounting Basics

    Step 2: Manage Your Cash Flow

    Step 3: Improve Your Profitability and Manage Your Risks

    Step 4: Understand the Basics to Billing and Reimbursement

    Chapter 7 Reflect and Redirect

    Beverly Sumwalt, MT (ASCP), MA; Tammy Richmond, MS, OTRL

    Step 1: Reflect on Performance and Productivity

    Step 2: Redirect to Enhance Profit and Reduce Expenses

    Appendix A Business Plan

    Appendix B How to Start a Private Practice: Break-Even Analysis and Potential

    Management Actions

    Appendix C Samples of Marketing Materials

    Appendix D Implementation Tools

    Appendix E Documentation Self-Assessment

    Appendix F Productivity Self-Assessment

    Appendix G Management and Operations Checklist

    Appendix H Sole Proprietorship Start-Up

    Appendix I Electronic Resources




    Tammy Richmond, MS, OTRL, is partner of Ultimate Rehab, LLC, Pacific Palisades, CA and an owner of a clinical private practice called Hands 4 Health. She is an adjunct professor at USC, a legal expert, and an author. She also holds positions in state association committees.

    Dave Powers, PT, DPT, MA, MBA, is partner of Ultimate Rehab, LLC, Pacific Palisades, CA and an owner of a clinical private practice. He holds positions within the national and state Physical Therapy Associations, holds faculty positions at Mount St. Mary’s College, Los Angeles, CA and University of Southern California, Los Angeles, CA, and serves as an expert witness and investigator for the State of California Licensing Board.

     "The book is written in a straightforward, easy-to-read format. It presents the basic principles of development and operation of a private rehabilitation practice in language appropriate to the management of any small business. The writing style lends itself to rehabilitation professionals who are novices in the area of business management and who are just beginning to explore the conceptual ideal of developing a private practice. Also contained in the book are many tables in each chapter and appendices that provide sample forms the reader can use to implement each step in the creation and development of a rehabilitation practice. Business Fundamentals for the Rehabilitation Professional is a worthwhile read for any rehabilitation professional who is considering opening a private practice. It will provide the basic knowledge to determine if the development of a private practice is a good move and will provide a basic framework to guide the decision matrix required to develop and implement a viable and sustainable business endeavor."  

    — John M. Cheeks, PT, DPT, DHS, MSG, CSST, CEA, School of Allied Health, Department of Physical Therapy, Louisiana State University, Laurel, MS, Activities, Adaptation, & Aging

     "I recommend this book for any rehab professional who is even thinking about starting a business practice. It is useful for non-rehab business start-ups. In addition, the text could be used by existing rehab businesses to improve on current practices."  

    — Mary Casey, MS, PT, ADVANCE for Physical Therapists & PT Assistants