
Physical therapy operates on a straightforward but often underappreciated reality: patients spend the vast majority of their time outside the clinic. For most treatment plans, that translates to roughly 2–3 hours per week of direct care — and approximately 165 hours managing their recovery independently.
Research consistently shows that only about 30% of patients follow through on their prescribed home exercise programs. The implications for outcomes are significant, and for most practices, that gap in between visits has historically been difficult to address.
The 165-Hour Gap
The traditional PT care model is well established: evaluate, treat, prescribe a home exercise program, and schedule the follow-up. It has worked for decades, but it leaves a meaningful window of time where the practice has limited visibility into how the patient is actually progressing.
By the time the next appointment arrives, clinicians are often working from incomplete information — patient self-reporting, observable functional changes, and their own clinical judgment. That’s not a flaw in the model. It’s simply the constraint the model was built around.
Remote Therapeutic Monitoring changes that constraint.
RTM is distinct from Remote Patient Monitoring, which tracks physiological data like blood pressure and heart rate. RTM focuses on the metrics most relevant to rehabilitation: exercise adherence, pain trends, and functional status between visits. It gives the care team a window into the 165 hours that have traditionally been invisible.
Importantly, CMS now reimburses for that monitoring. The 2022 introduction of RTM CPT codes — expanded further in the 2026 Medicare Physician Fee Schedule — created a direct billing pathway for physical therapists and occupational therapists to be compensated for between-visit care management. That’s a meaningful shift in how outpatient rehab can be structured and reimbursed.
What RTM Actually Changes About Care Delivery
RTM is most usefully understood as a feedback loop rather than an administrative add-on. When patients engage with a monitoring platform between visits — logging adherence, tracking pain, completing functional assessments — that data becomes actionable before the next appointment.
A therapist who can see that a patient’s pain scores have been trending upward on days three through five post-visit can adjust the home exercise program proactively. A team that notices adherence dropping off in week two can reach out before outcomes plateau. These aren’t reactive interventions — they’re the result of having real-time visibility into the recovery process.
The in-clinic visit doesn’t become less important. It becomes more targeted, because the care team arrives informed rather than starting from scratch.
The Hybrid Care Model
The practices seeing the strongest RTM results are operating what amounts to a hybrid care model: structured in-clinic treatment supplemented by between-visit monitoring, outreach, and plan adjustment. The components are straightforward — a patient-facing app for exercise guidance and symptom tracking, a clinical workflow for reviewing that data, and a protocol for acting on it when something warrants attention.
For the patient, the experience is meaningfully different. Rather than transitioning from an attentive clinical environment to managing recovery alone, they have a support structure that follows them home. Pain trend data gets reviewed. Adherence is acknowledged. Adjustments happen in real time rather than at the next scheduled visit.
For the practice, that translates to better outcomes, stronger retention, and — with appropriate RTM billing — reimbursement for care that was previously being delivered informally or not at all.
What the Reimbursement Data Actually Shows
RTM has generated significant interest as a revenue opportunity, and the billing codes are real. But a closer look at actual reimbursement data from a practice running RTM in Florida — compared against 2026 CMS Medicare Physician Fee Schedule national rates — reveals a more nuanced picture.
Device supply codes are paying above Medicare rates.
| Code | Description | MPFS Rate | Avg Paid | Variance | Claims |
|---|---|---|---|---|---|
| 98977 | MSK Device, 16–30 days | $39.75 | $47.42 | +19.3% | 23 |
| 98985 | MSK Device, 2–15 days | $39.75 | $44.97 | +13.1% | 8 |
Payers are reimbursing above the fee schedule for device supply codes. The signal is clear: payers want patients monitored and are actively incentivizing the infrastructure to support it.
Treatment management codes are being paid below MPFS rates.
| Code | Description | MPFS Rate | Avg Paid | Variance | Claims |
|---|---|---|---|---|---|
| 98980 | Tx Mgmt, first 20 min | $53.77 | $42.13 | −21.6% | 66 |
| 98981 | Tx Mgmt, add’l 20 min | $41.80 | $37.00 | −11.5% | 120 |
| 98979 | Tx Mgmt, 10–19 min | $26.05 | $19.82 | −23.9% | 2 |
The pattern mirrors a longstanding dynamic in PT reimbursement: payers are more willing to pay for infrastructure and device-related codes than for the clinical interpretation and management work that makes those tools meaningful. It’s not a new phenomenon, but it’s worth understanding before building financial projections around RTM.
Code combinations tell the complete story.
| Combo | Expected (MPFS) | Avg Actual | Gap | Claims |
|---|---|---|---|---|
| 98975 + 98977 | $61.46 | $63.81 | +3.8% | 74 |
| 98975 + 98985 | $61.46 | ~$62.00 | ~flat | — |
| 98980 + 98981 | $95.57 | $76.26 | −20.2% | 120 |
For the highest-volume code combination in a typical RTM workflow, payers are reimbursing approximately 80 cents on the dollar of the Medicare fee schedule rate. That’s a meaningful gap for practices building RTM into their revenue projections.
Is RTM Worth It?
The honest answer is that it depends on how the program is structured.
Practices building RTM primarily around treatment management reimbursement and expecting full MPFS rates are likely to find the economics more challenging than anticipated. Practices that stack device supply codes strategically, manage code combinations thoughtfully, and treat RTM data as a tool for improving in-clinic visit efficiency, reducing cancellations, and strengthening patient retention will find a more compelling case.
RTM is best understood as a care delivery investment that carries reimbursable codes — not the reverse. The practices that approach it that way tend to build something more durable than a billing program.
Your patients are recovering at home regardless. RTM gives your practice the ability to be part of that recovery in a structured, measurable, and now reimbursable way.
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