Bank Statement Analysis for Chiropractors and Physical Therapists
Chiropractic and physical therapy practices have insurance reimbursement cycles and self-pay patients. Learn how lenders analyze these healthcare practice bank statements.
Healthcare Practice Cash Flow Patterns
Chiropractic offices and physical therapy practices share some cash flow characteristics with medical practices but have their own distinct patterns. Understanding these helps lenders accurately assess practice financial health.
Revenue Sources in Chiropractic and PT Practices
Insurance Reimbursements
Insurance payments arrive as EFT deposits from payers — Cigna, Aetna, UnitedHealthcare, Blue Cross, Workers' Comp carriers, and auto insurance (PI practices). These batch payments arrive every 1–2 weeks per payer and are labeled with the insurance company name.
Medicare and Medicaid
Government payer deposits appear under CMS or state Medicaid agency names. These are reliable but often the lowest reimbursement rates per service.
Self-Pay and HSA Patients
Cash-pay patients and HSA/FSA card payments flow through the practice's POS system or payment processor (Square, Stripe) as daily card settlements.
Personal Injury and Workers' Comp
PI and workers' comp cases often pay in large lump sums at case settlement — creating irregular large deposits that inflate specific months when cases resolve. These are normal for PI-heavy practices but require explanation for income averaging.
Key Analysis Considerations
- Insurance payment lag: Revenue earned in Month 1 may not be deposited until Month 2–3 due to insurance processing time. This creates timing differences between services rendered and deposits received.
- Accounts receivable: Practices may have significant A/R not yet deposited. Bank statements understate a thriving practice if collections are slow.
- PI case timing: Large lump-sum settlement payments require explanation — they're not recurring monthly income but are legitimate revenue from prior work.
AI analysis with StatementScrub calculates 12-month average deposits, which smooths out the PI settlement timing issue better than shorter windows.
Loan Products for Chiropractic and PT Practices
- Equipment financing for adjusting tables, ultrasound machines, TENS equipment
- Practice acquisition loans
- Working capital lines of credit (for managing the insurance payment lag)
- Commercial real estate loans for purchasing office space
Related: Bank statement analysis for physicians | Dental practice bank statement analysis
Bottom Line
Chiropractic and PT practice bank statements are predictable when you understand insurance reimbursement timing and the occasional PI settlement lump sum. A 12-month analysis window provides the most accurate income picture for practices with case-settlement revenue.
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