Rehabilitative Therapy Practices NAICS 621340
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Industry Summary
The 31,700 rehabilitative therapy practices in the US provide services to help patients restore function, improve mobility, relieve pain, and prevent or limit permanent disabilities. Rehabilitative therapy includes physical therapy, occupational therapy, speech therapy, and audiology. Practices may also provide therapy through art, music, dance, exercise and recreation.
Dependence On Referrals
While most states allow patients to have direct access to therapy services, many managed care and Medicare plans require patients to obtain a referral from a physician.
Demand Projected To Grow
The aging US population, earlier hospital discharges, and improved infant survival are projected to drive increased demand for rehabilitative therapy.
Recent Developments
Sep 8, 2025 - One Big Beautiful Bill may Impact Therapy For School Students
- Hundreds of billions of dollars in cuts to federal health care spending, passed as part of President Donald Trump’s “One Big Beautiful Bill,” could negatively impact rehabilitative therapy professionals who work in schools. Schools are legally required to provide certain medical services, such as for students with disabilities who are enrolled in a special education program. Medicaid cuts in schools are expected to lead to a reduction in resources for students with disabilities, school health staff layoffs, and a reduction in mental and behavioral health services, according to the Healthy Schools Campaign. “The students who have disabilities often rely on Medicaid to cover therapies for speech, physical therapy, occupational therapy,” said Melissa Francis, a New Orleans parent union organizer with advocacy group Step Up Louisiana. “I know these cuts will limit these services, making it harder for them to function in school.”
- The 2025 Budget Reconciliation Act, also known as the One Big Beautiful Bill Act, also includes reduced support for people with Low-Income Subsidy (LIS) coverage through Medicare and loss of Medicare coverage for noncitizens, according to the Johns Hopkins Bloomberg School of Public Health. Rehabilitative therapy practices may be negatively impacted by the decrease in coverage. About 40% of Medicare beneficiaries receive low-income subsidies, according to Bloomberg School of Public Health professors. Immigrants with legal status can currently meet eligibility requirements to qualify for Medicare but the new legislation restricts eligibility to US citizens, green card holders, and legal immigrants from a few specific locations.
- The physical therapist workforce shortage is likely to continue through 2037, according to The American Physical Therapy Association (APTA). These shortages could significantly affect patient access to timely care without strategic interventions. "The growing demand for physical therapist services, coupled with an aging workforce, underscore the necessity for targeted interventions to expand our workforce," the APTA notes.
- Rehabilitative therapy industry employment and average wages for nonsupervisory employees increased slightly during the first six months of 2025, according to the US Bureau of Labor Statistics. Rehabilitative therapy practice sales are forecast to grow at a 6.08% compounded annual rate from 2025 to 2029, faster than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.
Industry Revenue
Rehabilitative Therapy Practices
Industry Structure
Industry size & Structure
A typical rehabilitative therapy practice operates out of a single location, employs 16 workers, and generates $1.3 million annually.
- The rehabilitative therapy industry consists of 31,700 companies, employs about 493,100 workers, and generates about $41 billion annually.
- Most rehabilitative therapy practices are small, independent operations; 67% have a single location and 89% employ fewer than 20 workers.
- Large companies include Select Physical Therapy, US Physical Therapy, and Concentra.
Industry Forecast
Industry Forecast
Rehabilitative Therapy Practices Industry Growth
Source: Vertical IQ and Inforum
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