# Payer mix

A term used when buying physical therapy practice.

The split of revenue across who pays, from Medicare to a patient's own pocket.

The mix sets both what a visit is worth and how exposed the practice is to one payer's next decision, which moves value more than visit volume does. Ask for revenue and days-to-collect by payer over three years. A practice leaning on personal-injury or workers-compensation work earns more per visit and waits far longer to be paid, and the working capital that requires is a real cost nobody quotes in the multiple.

Part of: Buying a Physical Therapy Practice (https://searchspheresource.com/guides/buying-a-physical-therapy-practice)

Source: https://searchspheresource.com/guides/buying-a-physical-therapy-practice/terms/payer-mix