Up next in 10
How to Choose a Location to Open a Physical Therapy Clinic in 2022
35K views
Oct 19, 2022
Picking a physical therapy clinic location can be easy or complex. By choosing a location directly across the street from a hospital owned outpatient physical therapy clinic I was able to save money on marketing by simply accepting patient referrals that didn't want to wait 3 weeks for an initial physical therapy evaluation. #physicaltherapymedicare #occupationaltherapymedicare #speechtherapymedicare ✔️ If you would like to learn more about Medicare billing please join our FREE Facebook community at Medicare Billing for (Mostly) Cash Based PT, OT, SLP ✔️ If you are interested in learning more about billing Medicare check-out our website at Learn Medicare Billing ✔️ And if you just want to learn more about me 😀 check-out my Facebook profile. If you would like to mail me: Total Therapy Solutions 5900 Long Meadow Dr Middletown, OH 45005
View Video Transcript
0:00
So I was asked about my experience opening a private practice outpatient orthopedic clinic
0:06
directly across the street from a hospital-owned outpatient private practice orthopedic clinic
0:12
Guys, if you don't know me, my name is Tony Maritato and this channel is dedicated to
0:17
helping clinicians just like you learn how to build a business that will bring you financial
0:22
freedom, independence, and security. So yeah, that's exactly what I did. Now, there is a concept known as hotelings game theory or hotelings law
0:37
I don't remember exactly. I didn't know what it was at the time. I just researched that name like now before I started recording this video
0:45
But the concept is when you look at the corner of an intersection with a traffic light, there's
0:51
probably a gas station there and there's probably two or three gas stations at that corner
0:56
So you would say, why would a gas station open right next door to another gas station
1:01
a competitive gas station? Gas is virtually a commodity. We're talking about pennies, if any difference in price
1:08
Why do they open so close to each other? Why for such a long time did Walgreens and CVS open across the street or on opposite corners
1:17
Why do we go and see banks located next to each other
1:21
The idea behind this principle is pretty simple. One business kind of trails the other if somebody puts market research and invest money into figuring out where the best place is to open that business
1:33
The other second business can come along and kind of take advantage of the market research done by the first business There is a whole example on YouTube if you go and you research hotel what is it Hotelings principle or hotelings game They talk about you know you open an ice cream
1:54
stand on a beach, you want to be in the middle of the beach so that you have maximum convenience
2:00
for both sides of the beach. But then if a competitor comes along, the competitor is going
2:06
to open right next to you so now you have maximum convenience from your side of the beach
2:11
What I realized was I was working for this outpatient hospital loan clinic. I was not a
2:17
therapist. I was an exercise tech, basically an aide, and I was watching as patients had to wait
2:23
two and three weeks to get in for initial evaluations. I was watching how patients had
2:29
to park in a parking lot which seemed miles and miles away from the front door and the patient
2:36
was exhausted by the time they got into the clinic. I was watching how there was no other physical
2:42
therapy clinics in this entire community and so it was a population of about 6,000 residents mostly
2:49
geriatric all living relatively in a closely dense population and there was only one hospital-based
2:56
clinic. So when I decided I was done working for the hospital and I was ready to go out and do my
3:03
own thing, I opened my first clinic in a community north of where this location was because I knew
3:10
that community. I lived in that community. That community didn't have any services. But then when
3:15
I was ready to open my second location, I specifically chose the space directly across
3:22
the street from the hospital clinic Why did I do that I did that because I knew patients were coming to that hospital clinic I knew that those patients would see my sign I knew that I had better accessibility from the
3:35
parking lot. So where I was, the hospital-owned clinic was in a hospital-owned building. I was
3:43
across the street from that. I was in a shopping plaza. I had two very popular little restaurants
3:49
next to me. We had parking that was literally 10 feet or less from the front door. We had great
3:56
signage, great visibility, very accessible. So I knew that what was going to happen was I couldn't
4:03
compete with the hospital in terms of marketing to physicians. But since they were investing in
4:10
the marketing, they were investing in the luncheons and all the shadowing and all the other stuff we
4:14
used to do back in this was early 2000 patients would come to that facility that location and
4:22
literally I promise you I'm not joking when I was working there I would look out the window
4:27
at the pizzeria and the breakfast shop that I was going to go to and right in the middle of those
4:33
two restaurants that was my clinic so I knew there were patients in physical therapy looking at my
4:40
signage and they were coming across the street to come eat breakfast or eat lunch or eat dinner
4:45
they were walking by and when they saw that we had a physical therapy clinic there also
4:51
and when they saw that we could get appointments in in less than 24 hours that we could do so many
4:57
more things that the hospital couldn't do we very very quickly grew and so if a patient wanted to
5:04
wait two or three weeks to get into the hospital-owned clinic or come to us in two or three
5:09
hours we took all of the overflow and so that historically has been my most profitable clinic my most successful clinic that was the one clinic that I was able to sell and now the person who
5:22
purchased my clinic has literally 10x the business he's opened more locations and his revenue numbers
5:30
are 10 times what my revenue numbers were and he achieved that in less than two or three years it
5:37
was insane how quickly he was able to grow that location. So guys, point being, we always think
5:44
that we want to go into a virgin market, a community that is underserved. When in reality
5:51
if we stop for a minute and we look at what is already a proven successful strategy, gas stations
5:58
that open next to each other, banks that open next to each other, pharmacies that open next to each
6:02
other. When Starbucks comes into a community, you better believe you're going to see a Whole Foods
6:09
right around the corner. Like there is a reason why these businesses tend to cluster together
6:15
And so if you want to open, if I was going to open a new private practice today, you better
6:21
believe the first thing I'd be looking for is a hospital-owned outpatient satellite clinic
6:25
And I would probably open either straight across the street or right next door. Because all I want
6:31
is the overflow that can't get in to see the hospital-based therapist. Guys, I hope that was
6:37
helpful. I hope that was inspiring. Let me know what you have found. If you want me to share more
6:43
videos talking about site selection for new private practices, I'm happy to do it. If you
6:49
guys want to see this video right here because Google and YouTube think it's a video you might
6:54
like, go ahead and click on it. Otherwise, I'll catch you on the next video
#Hospitality Industry
#Medical Facilities & Services
#Physical Therapy
#Small Business