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Physical therapy billing

Physical therapy billing where every unit is counted correctly

Physical therapy billing turns treatment minutes into billable units of timed CPT codes, applies therapy-specific modifiers, and keeps every claim tied to a current, certified plan of care. Small errors — one unit too many, a missing modifier, an expired authorization — repeat across every visit in an episode of care.

Built for

  • Independent outpatient PT clinics
  • Multi-location physical therapy groups
  • Practices offering PT alongside OT or speech therapy
Therapist examining a patient's leg on a treatment table

Where physical therapy revenue usually gets stuck

Unit calculation
Timed codes are billed in 15-minute units; Medicare and many commercial payers count minutes differently.
Plan of care certification
Claims depend on a signed, current plan of care and timely recertification.
Visit limits and authorizations
Commercial plans often cap visits or require authorization after an initial number, sometimes managed by a third-party vendor.
Modifier requirements
Therapy discipline, threshold and assistant modifiers must be applied on the right lines.
Code-pair edits
Certain procedure combinations require a modifier and distinct documentation to be paid together.
Team meeting in a modern officeDoctor writing on a patient chartCalculator and pen on a stack of papers

What we handle for you

The services that apply to physical therapy practices, and what each one means in practice.

ServiceFor physical therapy practices
Eligibility, benefits and prior authorizationVisit limits, authorization requirements and therapy benefit details before the evaluation.
End-to-end medical billingPer-visit claims with correct units, modifiers and plan-of-care dates.
Medical coding and coding qualityEvaluation complexity, timed vs untimed codes and NCCI edit resolution.
Denial prevention and appealsMedical necessity, unit, modifier and authorization denials.
Credentialing, payer enrollment and contractingTherapist and group enrollment, including Medicare PECOS.
Accounts receivable managementEpisode-level follow-up so denials don't stack across visits.

Claims, coding and authorization details that matter

Timed units
Medicare applies the '8-minute rule' to total timed minutes; some commercial payers apply different counting methods. We bill to each payer's method.
Therapy modifiers
Medicare requires the GP modifier on services delivered under a PT plan of care, and the KX modifier once annual therapy spending passes the threshold, attesting medical necessity.
Physical therapist assistant services
Services furnished in whole or in part by a PTA carry the CQ modifier under Medicare and are paid at a reduced rate.
Evaluations
PT evaluations (97161–97163) are selected by complexity, and re-evaluations (97164) have their own coverage rules.
NCCI pairs
Pairs such as manual therapy with certain other procedures may require modifier 59 or an X modifier, used only when documentation supports a distinct service.

Less chasing insurers. More time with your patients.

Our physical therapy billing workflow

  1. 1

    Benefits and authorization

    Therapy benefits, visit limits and authorization needs verified before the evaluation.

  2. 2

    Evaluation and plan of care

    Plan of care sent for certification; certification date tracked.

  3. 3

    Visits documented

    Timed minutes per code and total treatment time documented each visit.

  4. 4

    Units and modifiers checked

    Units, discipline modifiers and code-pair edits checked before submission.

  5. 5

    Progress and recertification

    Progress report and recertification due dates tracked across the episode.

  6. 6

    Visit count reconciled

    Authorized visits counted down; renewals requested before they run out.

Payer coordination

  • Commercial payers increasingly use utilization-management vendors for therapy authorization, each with its own submission process.
  • Visit limits may be combined across PT, OT and speech therapy under one benefit.
  • Workers' compensation and auto claims follow state-specific rules and fee schedules separate from health insurance.

Compliance notes

  • Medicare requires plan-of-care certification by a physician or non-physician practitioner and periodic recertification; progress reports are required at defined intervals.
  • The Medicare therapy threshold amount for the KX modifier is updated annually; we apply the current year's figure.
  • Coding statements are general guidance; final code selection depends on documentation and current payer policy.

Physical therapy billing: questions we hear

Do you bill under the 8-minute rule for every payer?

No — only where it applies. Medicare and payers that follow Medicare use it; others use their own method. We configure billing per payer so units match each payer's rules.

Can you track plan of care and progress report deadlines?

Yes. We track certification, recertification and progress report dates for each patient episode and alert your team before they are due.

How do you handle visit limits?

We verify limits before the evaluation, count visits as they are billed, and alert your team before authorizations or benefits run out.

Do you bill PTA services differently?

For Medicare, yes — services furnished in whole or in part by a PTA carry the CQ modifier. We apply payer-specific assistant rules where commercial plans have them.

Primary sources

Content last reviewed . Payer rules change; this page is general information, not legal or coding advice for a specific claim.

Let's look at your physical therapy revenue cycle

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