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This study measures the variance in Army physical therapy (PT) clinic productivity as measured by the Performance Based Adjustment Model (PBAM) and identifies predictors of PBAM productivity in 34 Army PT clinics. The Military Health System Management and Analysis Reporting Tool (M2) and the Expense Assignment System (EAS IV) were queried to obtain FY 06 and 07 monthly encounter, relative value unit (RVU) and full time equivalent (FTE) data. Statistical process control identified extensive special cause variation in Army PT clinic productivity. Multiple linear regression analysis identified four predictors of PBAM productivity: (1) the proportion of work performed by technicians, (2) the proportion of FTEs recorded in non-patient care functional cost codes, (3) the number of RVUs coded per encounter and (4) the proportion of care that is outpatient-centered. The final prediction model obtained was R2 =.419 F(816) = 146.00, p.