Complicated billing requirements challenge physical therapy industry, creating inefficiencies and confusion.

This article is designed to explain the subtle differences between the reimbursement requirements for coverage of physical therapy services in physician-based settings under the Medicare benefit policy manual chapter 15--covered medical and other health services. These billing challenges have a profound financial impact on the physical therapy industry. This article includes: (1) a general back ground of the reasons surrounding the increased regulations in the physical therapy industry; (2) general definitions within the physical therapy industry; (3) a discussion of the confusing and complicated bill ing requirements for physical therapy services; (4) a discussion of the "incident to" billing requirements within the physical therapy billing requirements; (5) an explanation of differing rules or policies within the physical therapy billing requirements; and (6) a discussion of why these rules regarding physical therapy billing requirements are essential to the delivery of quality of care within the physical therapy industry.