How to start a private physical therapy practice

Starting your own private physical therapy practice is an exciting and rewarding adventure, especially when transitioning from working as an employee at a clinic or facility.

While there are challenges along the way, a little thoughtful planning and preparation can make all the difference. With the right mindset and some smart steps, you’ll set yourself up for success and enjoy building a practice you’re truly proud of!

Summary

• Establishing a clear plan for your physical therapy private practice helps secure funding, identify weaknesses, and guide smart decisions about finances, staffing, and operations. Download my free business plan for private practices.

• Whether brick-and-mortar, mobile, or telehealth, the setup for your physical therapy private practice should align with patient demand, financial goals, and compliance requirements.

• Begin insurance credentialing early, ensure legal and regulatory compliance, and invest in an all-in-one EHR to streamline operations.

• Build visibility through digital marketing, community outreach, and referrals, while planning for future scalability and team support.

Streamline your practice with One EHR

• Scheduling
• Flexible notes
• Template library
• Billing & payments

• Insurance claims
• Client portal
• Telehealth
• E-fax

Learn More

Here’s a step-by-step guide to help you launch your private physical therapy practice with confidence.

9 Steps of starting your own private physical therapy practice

Step 1: Research demand

• Assess local need for physical therapy services using workforce surveys and community data.
• Identify gaps in access where your clinic could thrive.

Step 2: Create a business plan

• Write an executive summary, mission, and company overview.
• Define services, pricing, and target market.
• Include marketing strategy, operational plan, and financial projections.
• Use it to secure funding, anticipate risks, and guide decision-making.

Step 3: Choose a practice model and location

• Decide between brick-and-mortar, mobile, or telehealth.
• If opening a clinic, ensure ADA compliance, accessibility, and adequate space.
• For mobile/virtual, secure reliable tech, transportation, and HIPAA-compliant tools.

Step 4: Begin insurance credentialing

• Start early (can take 4–6 months).
• Apply individually with each insurance provider.
• Offer cash-pay or HSA/FSA options while waiting for approval.

Step 5: Ensure legal and regulatory compliance

• Choose a legal structure (LLC, S-Corp, etc.) with guidance from a business attorney.
• Obtain state/federal licenses, tax IDs, and permits.
• Secure malpractice and liability insurance.
• Ensure HIPAA and ADA compliance.

Step 6: Invest in tools and software

• Select an all-in-one EHR/practice management system (e.g., TheraPlatform).
• Digitize intake forms, billing, documentation, and scheduling.
• Automate administrative tasks to save time and reduce errors.

Step 7: Build marketing and referrals

• Develop a digital strategy (SEO website, social media, Google Business Profile).
• Network with physicians, schools, sports teams, and community organizations.
• Offer workshops or free screenings to boost visibility.

Step 8: Assemble your team

• Hire or outsource billing, admin, and marketing support.
• Bring on clinicians and staff aligned with your values.
• Scale slowly but plan ahead for growth.

Step 9: Plan for growth and sustainability

• Set systems in place for scalability.
• Automate admin tasks, set boundaries to avoid burnout, and connect with other business owners for support.

As noted, opening a physical therapy private practice starts with identifying demand and building a strong foundation through planning, compliance, and the right tools.

Success depends on choosing the best practice model, securing insurance and legal readiness, and investing in efficient systems.

With effective marketing, referral networks, and a supportive team, therapists can grow their practice while meeting the rising need for accessible, quality care.

Let's dive in and take a closer look at each step of starting your own private physical therapy practice.

Is there a need for another physical therapy private practice?

When considering opening a new business like a physical therapy private practice, it is important to understand where the needs exist. Despite an estimated 52,000 PT clinics existing in the U.S. as of 2023, the 2024 APTA Physical Therapist Workforce Survey found that in many areas in the country, therapists cannot accommodate all the patients who need services:

• About 24.1% of respondents reported they could provide care to all who requested appointments but could not have accommodated more patients without extending work hours.

• About 25.5% of respondents reported that they could not accommodate local patient demand.

Despite the existence of tens of thousands of clinics, the statistics suggest demand is exceeding supply in many areas, leaving room for those who are ready to open their own physical therapy private practice. Following the steps outlined below will help you get started on the right foot.

Practice Management + EHR + Telehealth

Mange more in less time in your practice with TheraPlatform

Start Free Trial

A physical therapy private practice starts with a plan

Every successful business starts with a business plan. The Small Business Development Center at Duquesne University emphasizes two reasons why a business plan is a strategic tool for any new business.

First, the plan helps you focus on the steps necessary to transform your idea into a successful reality. Second, it can help you achieve both long-term and short-term objectives.

When writing your physical therapy practice business plan, consider these three important uses:

• Raising money for your business

A thorough description of your business goals and structure, and its financial plan, helps build confidence among potential lenders and investors

• Identifying potential weaknesses

Putting your plan in writing allows you to identify potential pitfalls while allowing others you trust to provide their insight and opinion

• Making sound decisions

By outlining your business ideas and strategies, you’ll make better decisions about financial matters, management issues, human resource planning and more.

Now that you understand why you should make a business plan, let’s outline the key sections to include in that plan:

• Executive summary and mission statement
• Company overview and legal structure
• Target market and competitive analysis
• Services offered and pricing model
• Marketing and growth strategy
• Operational plan
• Financial projections and budget

Free Resources for Therapists

Click below and help yourself to peer-created resources:

• Ready-to-use worksheets, checklists, assessments & more!
• Master insurance billing with our expert-led course
• Telehealth 101: On-demand videos
• Curious how TheraPlatform solves private practice pain points?

Choosing a location for your physical therapy private practice

Thanks to public policy changes, therapists have more choice than ever when selecting a location for their private practice.

Some will go the traditional route and open a brick-and-mortar business, others will create a mobile practice and travel to their clients, and some will forgo those models altogether and provide virtual care from the comfort of their own home. Each has its pluses and minuses but all benefit from careful planning.

Meeting with your financial planner is a great place to begin your exploration into which option best suits your financial goals. Once you’ve made this decision, choosing the location is the next step. You want to ensure the practice is close to your target clientele and easily accessible. Additionally, the right location should have ample space for equipment, private treatment rooms, areas for charting and proper ADA accessibility.

Mobile and virtual physical therapy private practices

Both mobile and virtual practices can have benefits over a physical office space. Fully virtual practices that provide telehealth only, reduce geographic limitations and can expand the patient pool considerably.

Both of these models also reduce overhead as a clinic space is not necessary. Mobile practices require a reliable form of transportation and enough personal equipment to bring your practice with you, but this will be much less costly than if you had a physical practice space.

Whether you are seeing patients via telehealth or through a mobile practice, though, having access to HIPAA-compliant video software and electronic medical records as well as secure patient forms, is mandatory.

Start the insurance credentialing process

If you plan to accept health insurance as payment for physical therapy services, credentialing is your first step and one you should begin early. Credentialing is the process of becoming accepted into an insurance plan’s preferred network of providers. Through this process, you will prove to each insurance company that you are worthy of being one of their in-network providers.

Watch the Insurance Credentialing for Therapists video

→ Free Insurance Billing Course for Therapists

This process must be completed with each insurance plan for each provider practicing at that location.

Without credentialing, your providers will not be reimbursed by the insurance company. It can be a lengthy process, sometimes lasting 4-6 months and consulting someone experienced in insurance credentialing is recommended.

If you haven’t yet completed the credentialing process by the time your doors open though, some options still exist. While you wait, you can offer cash-pay services or the choice to use an HSA or FSA.

Keep it legal

When planning to open your own business, you need to decide on its legal structure. Will you create an LLC or an S-Corp?

Many factors go into deciding which is right for you, and consulting with a business attorney is a great way to ensure you are making a sound choice.

Next, consider the various legalities around opening a physical therapy business. These will vary by state, county and even city. The U.S. Small Business Administration is a great place to begin.

They can help you navigate the necessary federal and state permits and licenses and get a federal and state tax ID number.

Finally, as a healthcare practice, you will need to know how to make your practice both HIPAA and ADA compliant and secure business insurance, including malpractice and general liability insurance.

Invest in the right tools and software

Running a physical therapy private practice involves juggling a lot of processes. Having an effective software system and organizational strategy is a must.

A good electronic health record (EHR) and practice management software system can manage billing and invoicing, documentation, scheduling, client portals, intake paperwork and even telehealth visits.

By incorporating automation capabilities, you can reduce errors and admin workload while enhancing compliance and reducing burnout and stress for staff and clients.

Even organizing and standardizing your paperwork can save a lot of headaches and can be accomplished with a good EHR system.

Intake forms, informed consents, financial policies and even cancellation policy forms can all be digitized and organized through your EHR system.

Develop a marketing and outreach strategy

Marketing is the key to bringing business through the door. Potential clients may hear about your business in many ways, so take some time to develop a marketing and outreach strategy and start spreading the word before you launch.

Word of mouth can be a powerful referral source, but it isn’t likely to fill your entire schedule.

Instead, consider digital marketing strategies such as building an SEO-optimized website, having an active social media account, advertising in online publications that your target clients read, and creating a well-reviewed Google Business Profile.

Getting your face and name out in the community is another powerful marketing strategy.

Start networking with local physicians and specialists and consider joining your local Chamber of Commerce or business groups. Even offering free talks, giving community workshops or free screenings introduces the community to your skills and value.

Build a strong referral network

If you have been actively networking in the community, you have already begun building a referral network. Partnering with physicians, chiropractors, schools and sports teams, fitness centers and other groups is a great way to build your referrals.

Be sure to have your business cards, brochures and information about the services you offer ready to share.

You want to show your referral sources the value you bring to the table and understand that getting consistent referrals can take time.

Assemble the right team for your physical therapy private practice

Whether you plan to scale your physical therapy private practice or run a solo practice, you will likely need support in the form of other team members. If practicing alone, consider hiring billing specialists, front desk support and even marketing consultants.

Outsource tasks that you don’t want to do or cannot perform well or efficiently. Building a clinical and support staff that align with your practice philosophy is worth the time and effort.

Plan for growth

Opening a physical therapy private practice takes planning and patience. In most cases, starting lean is a safe place to begin, but planning for growth in your business plan can help you scale space, systems and staff effectively, when the time is right.

Additionally, being a business owner means taking on a lot of responsibility.

Automating admin work to allow you to focus on patient care, setting boundaries to protect your time and energy and having support from other business owners can all help avoid burnout.

Plan for success

In the end, you can’t go wrong when you plan for success. Start the process with a solid business plan to organize your business structure, plan for growth and attract investors.

Next, obtain an all-in-one EHR program like TheraPlatform and hire a good team of staff and clinicians.

Finally, spread the word and your practice can help close the gap in the need for great physical therapy services throughout the country.

Streamline your practice with One EHR

• Scheduling
• Flexible notes
• Template library
• Billing & payments

• Insurance claims
• Client portal
• Telehealth
• E-fax

Learn More

Resources

TheraPlatform is an all-in-one EHR, practice management, and teletherapy software built for therapists to help them save time on admin tasks. It offers a 30-day risk-free trial with no credit card required and supports different industries and sizes of practices, including physical therapists in group and solo practices.

More resources

• Therapy resources and worksheets
• Therapy private practice courses
• Ultimate teletherapy ebook
• The Ultimate Insurance Billing Guide for Therapists
• The Ultimate Guide to Starting a Private Therapy Practice
• Mental health credentialing
• Insurance billing 101
• Practice management tools
• Behavioral Health tools

Free video classes

• Free on-demand insurance billing for therapist course
• Free mini video lessons to enhance your private practice
• 9 Admin tasks to automate in your private practice

References

American Physical Therapy Association. (2025). APTA Physical Therapy Supply and Demand Forecast: 2022-2037. https://www.apta.org/contentassets/787bafc2ef664074ace8914f748ee4cd/apta-2025-workforce-forecast-companion-report.pdf