The Financial Role of Red Light Therapy in Your Clinic

Most clinicians do not enter their profession with the goal of making large amounts of money—they are driven by a desire to help people. However, in order to provide continued care, clinics must remain financially viable. If a practice cannot sustain itself, patients ultimately lose access to treatment. For that reason, the financial impact of any new modality must be carefully considered.

Red light therapy presents a strong opportunity to enhance patient outcomes. From a broader perspective, better results often lead to increased referrals and long-term financial stability. Below are several key considerations when evaluating the financial role of red light therapy in a clinical setting.

Billing Codes

Although cash-based care is growing in popularity, most therapy clinics in the United States still operate within an insurance-based model. Accurate coding and billing are essential for these practices.

Below are several billing codes that may be apply to red light therapy. It is important to note that regulations vary by state and profession, so clinicians should verify guidelines before implementing any billing strategy:

• 97026 — Attended infrared light therapy. This code was originally intended for traditional heat lamp infrared treatments.
• 97032 — Attended electrical or photonic stimulation, billed in 15-minute increments.
• 97039 — Unlisted modality requiring constant attendance (e.g., attended laser therapy).
• 97112 — Neuromuscular reeducation, which may include laser therapy, billed in 15-minute increments.

Cash-Based Services 

A cash-based model is not suitable for every clinic or patient population, but it does offer flexibility and advantages for both providers and patients. Cash-based businesses are typically easier to introduce new services and pricing structures. Red light therapy can be incorporated into treatment packages or included within hourly service rates. Patients in these environments often expect customizable care options and are more open to selecting additional services.

Even in insurance-based clinics, there is often an opportunity to offer red light therapy as a cash add-on—similar to the way that many clinics bill for services like dry needling or kinesiology taping, which are frequently not well reimbursed by insurance providers.

Retail Opportunities

Selling products within the clinic can improve patient outcomes, enhance satisfaction, and create an additional revenue stream. Clinicians are often viewed as trusted sources, so when patients experience positive results with a particular treatment, they may want to continue it at home. 

Offering red light therapy devices directly in the clinic allows patients to purchase a reliable, clinician-recommended product without needing to search elsewhere. Since many patients only attend therapy a few times per week, at-home use can help maintain progress between visits. Providing access to these tools benefits both the patient and the clinic, making retail a valuable component of care. 

Integrating Into Existing Services

One of the simplest ways to adopt red light therapy is to incorporate it into the clinic’s existing workflow. This is most easily done by replacing traditional hot and cold packs with red light therapy.

Photobiomodulation provides similar pain-relieving effects to heat and ice, while also supporting improved tissue healing. Since heat and ice are typically not reimbursed by insurance, substituting them with red light therapy does not negatively impact revenue—even if separate reimbursement for red light therapy is not obtained. At the same time, patient outcomes are likely to improve.

Including red light therapy as part of standard care is often the most efficient approach of all of the above listed approaches. While it may not always generate immediate direct revenue, it can lead to better results in pain reduction, healing, inflammation control, and performance. High-quality care consistently leads to more referrals from physicians, as well as from satisfied patients and their networks.

This article is the fourth in a series on the clinical applications of red light therapy. Don't miss the first three articles in the series, linked below, and be sure to keep an eye on our articles homepage for upcoming articles in the series!

1. Red Light Therapy in Your Clinic: What is RLT?
2. Red Light Therapy Tools to Use in Clinical Settings
3. Practical Application of Red Light Therapy in Your Clinic

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