Physical Therapy Clinic Feasibility Study in Michigan

Michigan ranks high for therapy clinics

Michigan is a leading state for SBA rehabilitation and therapy clinic loans, 7 of 54, with 121 approvals worth $32.7 million in FY2017 to FY2026. Within Michigan, though, the class is small, 16 of 39, and its 0.91x location quotient leaves it a shade under its national weight. The median Michigan clinic loan is $125,000, 0.83x the national therapy median. No figure here stands apart from both the Michigan all-asset record and therapy clinics nationally.

Small loans and a dominant holder

Michigan clinic loans are compact: their middle half runs $52,100 to $321,000, sizes for equipment, leasehold build-out and practice purchases. The Huntington National Bank holds 49 of them worth $5.9 million, ChoiceOne Bank 12 worth $7.6 million, more dollars than Huntington's far larger count, and Fifth Third Bank 9 worth $2.1 million, while Michigan Certified Development Corporation has 9 of the 504 loans for $5.3 million. SBA 7(a) carries 106 approvals and SBA 504 carries 15; 2.5% are franchise units. Oakland County leads with 34, Wayne has 19, Macomb 15, Genesee 11 and Kent 9.

Outcomes so far

Michigan therapy clinics have lost little. The 48 funded in FY2017 to FY2021 carry a 2.1% charge-off floor, all of it early, since the five-year figure is the same 2.1%. Cancelled approvals form a larger share, 11.5% of FY2017 to FY2024 Michigan clinic approvals at minimum and 14.4% at the ceiling. The busiest year was FY2024, with 21 approvals worth $6.8 million, while FY2026 shows 4 worth $1.2 million.

For a Michigan therapy clinic, revenue is set by referrals and reimbursement, so a feasibility study should map the physicians, hospitals and orthopaedic groups that would send patients, and test visit volume against competing clinics. Equipment and build-out costs should be quoted, along with the time a new clinic needs to get credentialed with payers. Coverage belongs on the cash a Michigan clinic actually collects per visit, after claim denials and contractual write-downs, with a ramp that reflects credentialing delays, since those early months are when this record shows its losses. Where an acquisition is financed, the appraisal values the practice's cash flow, and the study should confirm how many referral relationships transfer with it.

Michigan's numbers capture SBA-guaranteed lending only, with each loan's present holder as SBA records it; rates are minimums while the loans remain open.