The primary reason a therapist may earn a relatively lower percent of revenue produced is because of the high risk associated with physical therapy services. Below is a list of 7 risks associated with the delivery of physical therapy services.

1. RAC audits and insurance take-backs (3-year lookback)
2. Other payment denials due to denied authorizations
3. Injury and personal harm to the patient or the therapist
4. Misconduct on the part of the therapist
5. Intellectual property theft
6. Damaged reputation of the business
7. Delayed payment due to clerical or administrative errors

A physical therapy business owner must be compensated for assuming the risks listed above plus a host of unlisted risk.

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