How would a studio handle the different pay scales with certified Pilates instructors and PT certified instructors? Is there a good way to handle equipment when scheduling and billing for different departments that share clients that involve cash vs.insurance?

Do it by time. A lot of PT clients can't do a full hour of equipment based work. At our studio we break it down into 35 - 45 minutes sessions. Privates get a full 55 minutes lesson using all the equipment (approx. 15/20 min. on each) because they are working more on general fitness. The PT clients usually only use about 1-2 pieces of equipment because their work outs are far more targeted than the general fitness client. We also work on co-pays. Because the lesson is shorter, and the average co-pay is $40 it actually works out in the favor of the studio. We then have the client submit the bill to their insurance company directly for any reimbursment.

In our studio, we rely on PT instructors mostly from studios we are affiliated (Power Pilates and Peak). Its pay scaled. For 100% pay rate for full attendance (as in group session). Say for a group session of 4 ( which is our apparatus class) 100% for four, 75% for 3, 50% for 2 and 25% for just one person. No show of clients, no pay on the instructor. The apprentice rates are $20-25/hr (lower end for private, higher end for group). The certified are going from ($28-$35). Pay scaling applies the same apprentice or certified. So far, this is the same method with 4 other studios around Austin, TX.