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
May 15, 2025 - Industry Stakeholders Concerned By Trump Administration Budget Proposal
- The federal 2026 budget proposal offered by the Trump administration is being met with concern by American Physical Therapy Association (APTA) and most other health care and consumer organizations, according to APTA. President Trump unveiled a budget plan with $163 billion in spending cuts to non-military programs. The agencies facing proposed reductions that would start on October 1 include the Environmental Protection Agency, the Energy Department, the Department of Education, the Department of Housing and Urban Development, and the Department of Health and Human Services, according to USA Today. The May 2 Trump administration proposal comes after courts have blocked many of those cuts, however.
- 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.
- The US Congress is considering plans to cut Medicaid to help pay for tax cuts, according to health policy organization KFF. A House of Representatives budget resolution targets $880 billion or more in potential reductions to federal Medicaid spending. Medicaid is the primary program providing comprehensive health and long-term care to one in five US residents and accounts for nearly $1 out of every $5 spent on health care. Government efforts to contain health care costs have resulted in constant pressure to change Medicare programs and lower reimbursements for therapy providers. Past legislation reduced reimbursements for multiple procedures billed in a single day.
- Rehabilitative therapy industry employment and average wages for nonsupervisory employees increased slightly during the first three 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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