Ep887 | Why Your Best Month Might Be A Huge Problem For Your Clinic
Release Date: 01/22/2026
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info_outlineHow Big Clinical Months Can Quietly Wreck Your Cash Flow
Big months feel like a win. More patients, more prepaid packages, more cash hitting the account. But if you do not understand how to manage that cash, those same big months can put you in a financial bind later in the year.
In this episode of the PT Entrepreneur Podcast, Danny breaks down why prepaid revenue creates false confidence, how owners accidentally drain their reserves, and the simple rule that keeps your clinic financially stable.
In This Episode, You’ll Learn:
- Why prepaid services are not the same thing as earned revenue
- How reactivation campaigns can create future cash flow problems
- The most common mistake owners make after a big revenue month
- Why your clinic can look busy but feel broke
- The minimum cash buffer every clinic should hold
The Problem With Big Revenue Spikes
Danny walks through a common scenario. A clinic normally doing $20,000 per month runs a strong reactivation campaign or sees a surge in new patients. That month jumps to $50,000, much of it prepaid.
On paper, it looks like massive growth. In reality, much of that cash represents services that have not been delivered yet.
Why Owners Get Burned Later
The mistake happens when owners take large distributions during those spike months. As patients return to use prepaid visits, monthly collections drop. The clinic suddenly looks like it is underperforming, even though the schedule is full.
Danny shares that he made this exact mistake early on and had to move personal money back into the business to stabilize cash flow.
The Rule That Fixes This
Before distributing extra cash, clinics should hold at least three months of overhead in the business account.
If your overhead is $12,000 per month, that means keeping $36,000 in cash on hand. Some owners temporarily hold even more after large prepaid months until things normalize.
Prepaid Does Not Mean Earned
The mindset shift is simple but critical. Prepaid revenue is not truly earned until the visits happen.
When you treat prepaid cash like future obligations instead of profit, cash flow becomes predictable instead of stressful.
Why Time and Clarity Matter
Cash flow mistakes often come from overwhelm. When owners are buried in documentation and admin work, there is no space to think strategically.
Claire helps remove that burden so you can stay present with patients and actually manage your business.
Next Steps
- Review your last big month and identify prepaid revenue
- Calculate three months of overhead and protect that cash
- Stop tying distributions to single-month spikes
- Build systems that create clarity instead of chaos
If you are still working toward going full time in your own clinic, PT Biz offers a free Part Time to Full Time 5-Day Challenge to help you build a clear plan.
Sign up here:
https://physicaltherapybiz.com/challenge