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
Feb 2, 2026 - Some States Expand ACA Subsidies
- Six states have taken measures to offset the cost of Affordable Care Act (ACA) plans after a lapse in federal funding left millions of Americans facing higher premiums, according to Healthinsurance.org. California, Colorado, Connecticut, Maryland, Massachusetts, and New Mexico have increased their state-funded ACA subsidies for 2026 in response to the expiration of federal tax credits at the end of 2025. The states "modified or enhanced their programs directly to address the reduction in federal premium subsidies," said Louise Norris, a health policy analyst for Healthinsurance. Nonprofit health group KFF reports that several states, especially those operating what are known as State-Based Marketplaces, have been preparing for the lapse of ACA tax credits for months. New Mexico, for example, will fully offset the loss of the federal tax credits for all residents, including recent immigrants. Ten states offer ACA subsidies but only six have increased them since federal subsidies lapsed.
- Legislation ending the federal government shutdown extended Medicare coverage of telehealth services through January 30, 2026, and paid retroactively for services rendered during the shutdown. Rehabilitative therapy practices that provide more care due to the expansion of telehealth were likely beneficiaries. The COVID-era federal government program that expanded access to telehealth expired on September 30, 2025. The program lost funding when lawmakers failed to pass a budget plan by September 30, 2025. Restrictions on who could get telehealth services covered by Medicare were tighter before the COVID-19 pandemic. Virtual healthcare appointments were mostly reserved for beneficiaries living in rural areas, provider facilities in rural areas, or those working with certain types of providers. Some pandemic-driven changes were permanent but others rely on temporary waivers to operate. Some of these temporary allowances included the ability to use telehealth services from anywhere without geographic restrictions, to have appointments in audio-only formats, and to receive mental health and behavioral healthcare virtually without regular in-person appointments.
- 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 eight 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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