Today on the Podcast: 2025 State of Rehab w/ Heidi Jannenga, WebPT
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About This Episode
What was the BIGGEST problem facing rehab therapists in 2025?
In this podcast, you'll find out.
Neil talks to Heidi Jannenga, Founder and Chief Clinical Officer of WebPT about WebPT’s 2025 State of Rehab Therapy report. This report surveys thousands of rehab therapists and practice owners about their top concerns and challenges.
We'll cover…
- Misalignment between PT owners & staff
- Biggest challenges for small, medium, growing, and enterprise clinics
- Opportunities for growth
Download the 2025 State of Rehab Report here: https://www.webpt.com/downloads/the-state-of-rehab-therapy-in-2025
Listen Above or Read The Summary Here:
Technology and AI: The New Backbone of Rehab Practices
Neil and Heidi highlight a significant shift in the rehab industry: the widespread adoption of technology and AI in 2025. Rising costs, staffing shortages, and ongoing reimbursement pressure push practice owners to seek efficiency through automation. Heidi explains, “The most significant shift that happened in 2025…was the introduction of even more technology. And of course AI…it’s really taken center stage.”
- AI and automation: Clinics are leveraging AI to reduce administrative burdens, particularly in documentation, scheduling, and billing. This trend allows therapists to focus more on patient care.
- Digital tools: Digital intake, automated benefits verification, and ambient documentation tools are becoming standard, improving both operational efficiency and the patient experience.
- Scaling with fewer admin staff: The traditional one-to-one admin-to-therapist ratio is shifting to as high as one admin to five therapists, thanks to smarter workflows and technology.
- Staying competitive: Smaller clinics must invest in technology to compete with larger organizations that are rapidly adopting these solutions.
Heidi advises, “The number one recommendation that we have for these smaller practices is looking into and leveraging technology and AI to increase their reach and efficiency, but without losing that personal touch.”
Retention, Motivation, and the Power of Non-Financial Incentives
A key insight from the 2025 State of Rehab report is the persistent gap between what practice owners think motivates their team and what clinicians actually value. While salary remains important, especially for new grads with significant student debt, it’s not the only—or even the primary—motivator.
- Non-financial motivators: Mentorship, open communication, professional growth opportunities, and a supportive work environment are crucial for staff retention.
- Empowering employees: Many clinicians and front office staff want more responsibility and involvement in practice operations, not just patient care.
- Tailored incentives: Owners should recognize individual motivators and customize incentives accordingly. Heidi notes, “Everybody’s motivated differently…there are definitely…a lot more non-financial motivators that aren’t being looked at.”
- Retention over recruitment: The therapist “shortage” is largely a retention problem. Many new grads leave the field or shift to digital care, emphasizing the need for a positive, engaging practice culture.
Neil adds, “You want someone that is duty oriented, they really want to help people, they really want to be part of a growing team…that’s the ideal people that you want to bring into your clinic.”
Financial Sustainability: Out-of-Network Strategies and Cash-Based Services
With declining reimbursements and rising costs, many small and medium-sized practices are reevaluating their financial models. Heidi observes, “This is the segment of the market that is going out of network…to try to increase their pay per visit.”
- Out-of-network growth: More practices are opting out of insurance contracts to command higher rates and improve sustainability, though this requires finding patients willing to pay more out-of-pocket.
- Hybrid models: Practices are increasingly adding cash-based services—such as dry needling, specialized modalities, and medically oriented gyms—to diversify revenue and offset insurance challenges.
- Automated patient billing: Automated benefit verification and point-of-service collections are now essential, as high deductibles and copays become the norm. Neil notes, “If you collect that payment at the time it is due, it is so much better in terms of the patient experience than if you’re calling them two, three weeks later.”
Staying on top of these financial processes ensures clinics are paid appropriately and reduces the friction of collecting from patients.
Action Steps for Practice Owners
- Invest in technology: Prioritize automation in admin-heavy processes to save time and money, but maintain the personal connection that drives patient satisfaction.
- Focus on retention: Foster mentorship, growth, and open communication with staff. Understand individual motivators and tailor incentives to each team member.
- Adapt your financial model: Evaluate your payer contracts, consider out-of-network and cash-based service lines, and ensure you have robust systems for patient billing and collections.
- Work on your business: Neil stresses, “If you don’t allocate the time to work on your business and block out half a day once a week…you can’t do it if you’re doing everything.”
As technology and patient expectations evolve rapidly, the most successful PT practices will be those that proactively implement change, focus on staff satisfaction, and optimize their financial strategies for long-term sustainability.
Common Questions Practice Owners Ask About This Topic:
- What are the biggest challenges facing rehab therapists in 2025?
- How can physical therapy clinics align better with their staff?
- What growth opportunities exist for small physical therapy practices?
- How do enterprise clinics differ from small and medium practices in challenges?
- Where can I download the State of Rehab Therapy report?
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