HealthSpark Blog

The business side of PT/OT practice, explained

Medicare, billing, and the operations of running a PT/OT practice — written by the team building the AI back office that handles them.

A therapist treating a patient in a clinic

All articles

Medicare audit letter · due Oct 12
Visit notesFound in EHR
Plan of careFound in fax
!RecertificationMissing signature
ResponseReady to review
Medicare

Medicare audit letters: what PT/OT practices need to gather for each claim

The evaluation, the signed plan of care, recertifications, progress reports, and daily notes, checked for missing signatures and gaps. What to gather for every letter in a batch, and how we turned the pile into a few minutes of review.

Stephen Grinich6 min read
Claim timeline · Sep 4 visit
Medicare paid$80.00
!Crossover to BCBSNot forwarded
Secondary claim builtSubmitted
Remaining$20.00
Medicare

Medicare crossover claims: why the secondary never gets billed, and how to catch it

Accepting Medicare doesn't mean the secondary pays the rest. How crossover works, how to tell whether Medicare forwarded a claim, and how to send the secondary claim yourself when it didn't.

Stephen Grinich10 min read
Medicare, before this visit
Home health episodeNone
!Advantage planHumana
Plan of careSigned Jun 14
Secondary claimSent
Medicare

The four Medicare traps that cost new PT/OT practices the most money

Open home health episodes, Medicare Advantage hiding behind a Part B card, plan of care dates, and the secondary claim that never gets sent. What each one is, why it costs money, and how to handle it by hand.

Stephen Grinich7 min read
Home health check
Aug 26 · visit 5No episode
Aug 29 · visit 6No episode
Sep 2 · visit 7No episode
!Sep 5 · visit 8Episode open
Medicare

Medicare home health overlap recoupments: why PT/OT clinics keep getting hit

The episode was not in Medicare's system the day you checked. Why an intake check is not enough, why the agency's answer cannot be trusted, and how the day-of-visit record turns a recoupment into an appeal.

Stephen Grinich8 min read
One visit, two payers
Medicare Part B
Paid 80% · $80.00
AARP Supplement
Crossover not received
Secondary sent
Patient owes$0.00
Medicare

Medicare secondary billing for PT/OT practices: who pays first, crossover, and the secondary claim

Medicare pays first, always. What a supplement is, why not being contracted with its carrier does not make the patient out-of-network, how crossover works, and how to build the secondary claim yourself when it fails.

Stephen Grinich8 min read
Card on file vs. plan enrolled
Medicare
On the card
Not billable
Humana Advantage
Actually enrolled
Bill this
Medicare

The Medicare Advantage card trap

Patients hand you a red-white-blue Medicare card and may actually have Medicare Advantage. How to catch it in the eligibility check before the claim denies.

Stephen Grinich6 min read
Therapy this year
$2,318of $2,410
KX added to this visit97110 · KX
Medicare

The KX modifier and the Medicare therapy threshold, explained

When the KX modifier applies, what your note needs to say, and where PT/OT practices get in trouble attesting without the documentation to back it.

Stephen Grinich6 min read
Coming due
Plan of care certifiedSigned Jun 14
!Progress noteDue next visit
!RecertificationDue Sep 12
Compliance

Medicare plans of care: the requirements and the renewal trap

What Medicare actually requires on a PT/OT plan of care, when signatures need to be collected, and how practices lose revenue to expired POCs they never noticed.

Stephen Grinich6 min read
Out-of-network visit
Your rate, paid today$180.00
Claim filed for patientNon-assigned
Payer reimburses patient$112.00
Sent to AetnaFiled
Billing

Out-of-network billing: do you charge your rate or the payer's?

Your rate. The payer's out-of-network allowed amount only sets what the patient gets back. How the money moves, why the claim goes out non-assigned, and the one benefits check to run before the first visit.

Stephen Grinich7 min read
Benefits, verified
Aetna PPO
Active · in-network
Verified
Copay per visit$25
Deductible left$150 of $500
Visits allowed18 of 30 left
Billing

How to verify PT/OT benefits before the first visit

A call script and checklist for benefits verification — what to ask, what to confirm, and the questions PT/OT practices routinely forget that cost them later.

Stephen Grinich5 min read
Denials this quarter
!CO-197 · No prior auth$2,140
!CO-4 · Modifier missing$860
!CO-29 · Timely filing$540
CO-18 · Duplicate$0
Billing

The 10 PT/OT denial codes that cause the most lost revenue

The denials that show up repeatedly on PT/OT remittances, what each one actually means, and the upstream fix that stops them from coming back.

Stephen Grinich7 min read
Denied claim
!CO-197 · Precertification absent
Aetna PPO · $214.00 · DOS Aug 18
Auth located, attached
Appeal faxedSep 4
Billing

How to appeal a denied PT/OT claim without burning time you do not have

Not every denial is worth appealing. Here is how to decide, the information the payer actually needs, and the timelines that can make a denial unrecoverable.

Stephen Grinich6 min read
Payment received
$1,240.16EFT
Blue Shield of California · Sep 9
ERA matched to 9 claims
Posted to each visit
Billing

Setting up ERA and EFT: getting paid electronically

Electronic remittances and electronic funds transfer cut weeks out of your payment cycle. Here is what the setup actually involves and why most practices skip it.

Stephen Grinich5 min read
Credentialing status
Aetna
Effective Aug 1
Approved
Blue Shield of California
Day 62 of ~90
In review
UnitedHealthcare
CAQH attested
Submitted
Credentialing

Getting credentialed with commercial payers in California

A realistic timeline, the documents you need before you start, and the mistakes that add 60 days to your credentialing calendar.

Stephen Grinich7 min read
Direct access, California
9 of 12
visits used
31 of 45
days used
!Physician sign-off needed by visit 12
Practice

California PT direct access: what you can and cannot do without a referral

California lets patients see a PT without a referral, but the 45-day and 12-visit rules still apply. Here is what direct access actually covers and where PTs get caught.

Stephen Grinich6 min read

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