Physical Therapy Services Facing Reimbursement Cuts

The passage of the American Taxpayer Relief Act of 2012 includes the addition of a provision that will reduce Medicare reimbursement to physical therapists come April 1, 2013, according to the American Physical Therapy Association. The decline would be slightly offset, but the bottom line is physical therapists will see a reduction in Medicare reimbursement if this provision is implemented.

While this change may be specific to Medicare payments, commercial payors often set their fees at a percentage of Medicare. As such, they may desire to adjust their fee schedule and align it with Medicare’s schedule, which could result in their attempting to cut your physical therapy reimbursement.

Changes in a practice’s fee schedule are not uncommon, which is why the fee schedule should be reviewed on at least a semi-annual or annual basis and routinely undergo a payor mix and fee schedule examination from medical billing and coding service companies. Medical billing companies with experience in fee schedule reviews can provide assistance in establishing the appropriate fee schedule for your practice.


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