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
Aug 1, 2025 - One Big Beautiful Bill Includes Medicare Coverage Cuts
- The 2025 Budget Reconciliation Act, also known as the One Big Beautiful Bill Act, 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.
- President Trump has signed into law the $3.4 trillion One Big Beautiful Bill that is estimated by Healio to include $930 billion in Medicaid cuts over 10 years. Nearly 12 million more people may be uninsured by 2034, with many losing coverage because of the Medicaid provisions in the bill, according to a US Congressional Budget Office analysis. For the first time in the Medicaid program’s nearly 60-year history, certain able-bodied adults aged 19 years to 64 years will be required to work, participate in job training, volunteer, or enroll in school at least 80 hours a month to maintain their Medicaid benefits. This will also be required for parents of children aged 14 years and older.
- 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 five 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
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