6 pillars of a successful business model for physical therapy clinics

In recent years DAVID has gained a lot of knowledge in developing business cases in various countries worldwide. But how do you set up a successful business case within Physical Therapy? During our conversations with distributors, investors, health insurers, and clients, we notice several essential pillars to ensure the clinic’s profitability.

Pillar 1: Add value to the various stakeholders

The main stakeholders for a physiotherapy clinic are health insurers (depending on the country), patients, personnel, referrers, and shareholders. To build a successful business case, these stakeholders need to see added value:

  • patient benefits from results-oriented therapy within a safe and friendly environment.
  • The referrer benefits from a reliable referral relationship, an evidence-based treatment program, and satisfied patients.
  • The health insurance company benefits from a results-oriented evidence-based treatment that prevents patients from consuming more care resources.
  • Shareholders want a profitable, innovative, and socially involved organization.
  • Clinic personnel want to work in a positive working environment with a variety of activities.


Pillar 2: Evidence-Based Exercise Therapy

Several systematic review studies in the Lancet, among others, have shown that Exercise Therapy is the first-line treatment for musculoskeletal complaints. More and more physiotherapy associations in Europe, the USA, and the rest of the world are adopting these studies and recommending Exercise Therapy as an evidence-based intervention for treating musculoskeletal disorders. This replaces the need for opioids or (in some cases) surgery.

In recent years, Health insurers have gained more influence on the treatment path of a patient. Essential conditions for the care purchase are that the treatment must be evidence-based, transparent, and results-oriented.

If exercise is medicine, why don’t we know the dose? With the three DAVID Solutions for the Spine, Shoulder, Hip and Knee, and the EVE software, training data is recorded, and validated outcome data is collected. This is done by systematically and automatically capturing patient information from diagnose based training templates and medical questionnaires to validated measurements of mobility and strength.

All these measurements are the basics for transparent business operations for the patient and, depending on the country, the health insurance company. Exporting this data at the individual or group level is exceptionally easy. In several countries, DAVID is already reimbursed directly by the health insurance company.


Pillar 3: Take your patient experience to the next level

In recent years there has been a significant transition within the healthcare sector. The patient who used to listen attentively to the physician has increasingly developed into a critical healthcare consumer. It is a collaboration between the physician, therapist and patient. 

The patient requires a result-oriented transparent treatment that can be quantified. However, not only is the result essential but the patient also experiences:

  • The expertise of the staff
  • Look and feel of the facility
  • Quality of the training equipment
  • Attention from clinic personnel during the treatment
  • Quality and price ratio of the treatment
  • Ability to follow own progression
  • Safe and friendly environment

This offering affects the patient’s experience and therefore provides a unique selling point to distinguish itself from the competition.


Pillar 4: Build a lasting relationship with the referrers

Referrers like to enter into an ongoing relationship with clinics. The most important points are:

  • Treatment is evidence-based
  • Clear and transparent reporting
  • Explanation of treatment benefits
  • Satisfied patients

With the EVE software, it is possible to gain insight into the patient’s treatment results. We manage this by adequately reporting and explaining the given therapy. This is done through:

  • Automatically generated outcome measures of medical questionnaires, strength and mobility test results of the patient
  • Graphical displays of training intensity
  • Final report for the referrer

Pillar 5: Use EVE as a virtual assistant

The intrinsic motivation of the therapist is to provide care. However, the therapist’s working conditions have decreased in recent years due to the reduction of patient time and the need for larger volumes of patients. An additional phenomenon is an administrative burden that takes more and more time away from direct patient care. With these constraints, how can we automate processes with the help of DAVID software?

EVE is a virtual assistant that takes care of patients. The therapist becomes a supervisor who monitors the patient’s movements through an interactive dashboard. This increases the productivity of the therapist and allows the therapist to pay attention to the patients who need just a little more help. In the meantime, EVE ensures a high-quality treatment without loss of quality through the use of artificial intelligence.

The advantages of the EVE method are:

  • Productivity of the therapist increases with a multiplier of a minimum of 3 and a maximum of 6 patients
  • Data is automatically saved and stored for reporting
  • Quality is guaranteed at all times
  • A therapist has more time for patients who need help
  • More variety for the therapist by automating the administrative burden
  • Therapists can focus on their expertise and skills

physiotherapy software for exercise therapy

Pillar 6: Investing with common sense

Why is investing in Exercise Therapy so attractive? The influence of global ageing, growing age expectations, and lifestyle-related diseases, such as obesity, diabetes, cardiovascular diseases, and problems with posture and the musculoskeletal system, create a great demand for physiotherapy in the near future. The biggest challenge for physiotherapy is that due to an increasing patient population and higher healthcare costs, efficiency must be achieved to manage patient numbers.

There is a shortage of physical therapists in the USA and several countries within Europe and Asia. The expectation is that this trend will continue to increase in the coming years. The only solution to meet the demand and control healthcare costs is time-saving technological innovations.

The implementation of DAVID within the current physical therapy setting or in a new facility has a substantial economic impact. This is determined by a number of factors including:

  • The productivity of the physical therapist increases
  • Administrative burden is reduced
  • Patient experience improves
  • Market position is strengthened
  • Patients become real ambassadors

In addition, connecting patients to the clinic for a longer time is possible by selling membership (training courses are coordinated by EVE) that do not require the assistance of therapists or tied to insurance.

Another possibility is through company prevention programs. Here, the emphasis is placed on testing and training employees on the DAVID equipment with individual graphical reporting for the employee and analyses on absenteeism and risk inventory for employers.


Are you interested in DAVID and would you like to discuss the possibilities of an investment? Please send an email to dan.rice@davidhealth.com