Breaking Down the “One Big Beautiful Bill Act” — What PT Clinics Need to Know
A recent analysis by Hooper, Lundy & Bookman highlights major shifts in the “One Big Beautiful Bill Act” (OBBBA) signed into law on July 4, 2025. Although the legislation covers wide-ranging topics—tax policy, education, defense—the most significant effects for healthcare come from deep Medicaid cuts and sweeping administrative reforms.
Major Medicaid and Key Healthcare Changes in the One Big Beautiful Bill Act
Let’s start off by saying, it’s not all bad. We have a silver lining.
There will be a temporary Medicare rate increase.
While many long-standing healthcare funding extensions were left out of the bill, lawmakers did include a one-year 2.5% increase to the Medicare Physician Fee Schedule starting in 2026. This short-term bump may offer some relief, but uncertainty remains beyond that year.
Now let’s take a look at the other key take aways.
$1 trillion+ in Medicaid cuts over the next decade
CBO and KFF project approximately $940 billion cut from Medicaid, potentially leaving ~12 million people uninsured by 2034.
Work and eligibility requirements introduced
Non-disabled adults (ages 19–64) must complete 80 work hours/month, or qualify for exemption—alongside biannual eligibility checks.
Provider tax limit changes
Caps reduced from 6% of net patient revenue down to 3.5% by 2032—impacting state Medicaid match funding.
Rural hospital funding vs. risk
A $50 billion Rural Hospital Fund was established, but is dwarfed by the broader Medicaid payment cuts—placing many rural hospitals in financial jeopardy.
Other limits That May NOT Affect PTs Directly But Still Matter
More frequent redetermination, reduced retroactive coverage, and restrictions on Planned Parenthood and gender-affirming care funding.
What Does This Mean in Terms of Real-World Consequences for Physical Therapy Clinics
Fewer insured patients → More self-pay visits
As up to 12 million people may lose Medicaid, PT clinics could see a surge in uninsured patients and uncompensated care. They could even see a decrease in patients due to lack of affordability.
Administrative overload
Verifying work requirements and eligibility twice yearly increases paperwork. Combined with billing, documentation, and AR tasks, this creates added strain on the entire clinic.
Referral disruptions
Financial stress on rural hospitals and post-acute care facilities may lead to closures—fragmenting traditional referral pathways.
Tightened finances
Lower reimbursements and slower payments will strain cash flow, making operational efficiency vital.
From Our Standpoint; How Does HENO Helps PT Clinics Adapt & Thrive With Such Drastic Changes?
Challenge: More Uninsured Visits
HENO Solution: Consolidated patient messaging and financial tracking mean no visit falls through the cracks. With HENO mass texting features and scheduling software you can still keep your appointment slots full.
Challenge: Admin Burden
HENO Solution: Mass Texting and scheduling software features helps to assure your calendars stay full. HENO’s AI SOAP notes allow you to cut down on daily documentation time by 5-10 hours. While the HENO Kiosk allows the Front Desk more space to accomplish other tasks while patients can check themselves in & out, update insurance, make copayments and fill out forms.
Challenge: Shifting Payer Mix
HENO Solution: In-depth payer analytics shows trends, enabling proactive adjustments. This can help you pivot and change strategies fast if you need to come up with financial solutions.
Challenge: Referral Network Changes
HENO Solution: Integrated referral tracking and patient outreach help clinics establish new partnerships.
Challenge: Cash Flow Pressure
HENO Solution: Built-in billing + clearinghouse automates claim filing, ERA posting, and faster reimbursements. Remote Therapeutic Monitoring can turn HEP’s into revenue for your clinics. Only just ten patients enrolled in Remote Therapeutic Monitoring can add $1500-$2000 in revenue to your clinic monthly.
Furthermore, HENO’s HIPAA-compliant, all in one system removes reliance on fragmented third-party tools and outside logins—reducing external risks and improving oversight.
So, What is There to Truly Take Away From This “One Big Beautiful Bill Act”?
Yes, the One Big Beautiful Bill Act is reshaping Medicaid, increasing administrative requirements, and putting post-acute/referral systems under stress. As a software that was built for you by Physical Therapists themselves, trust us when we say we get it. But clinics that proactively streamline billing, documentation, and analytics—like those using HENO—are much better positioned to handle these changes effectively.
Book your demo with HENO today and join the clinics that already trust us to keep them top of mind.
