Rehabilitative Therapy Practices
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 29,100 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.
Industry size & Structure
A typical rehabilitative therapy practice operates out of a single location, employs 14 workers, and generates $1.3 million annually.
- The rehabilitative therapy industry consists of 29,100 companies, employs about 448,700 workers, and generates about $37 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
Rehabilitative Therapy Practices Industry Growth
Recent Developments
Apr 2, 2024 - Moderate Sales Growth Expected
- Rehabilitative therapy practice sales are forecast to grow at a 6.17% compounded annual rate from 2022 to 2027, faster than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc. Employment increased moderately during 2023 while average wages for nonsupervisory employees increased slightly, according to the US Bureau of Labor Statistics.
- UnitedHealth Group has restored access to Change Healthcare’s electronic payments platform, which enables billing and payments between care providers and payers like insurers, according to the Associated Press (AP). A late-February cyberattack on the subsidiary of UnitedHealth Group, the largest healthcare company in the world by revenue, led to major outages in healthcare billing services across the US, according to company officials. UnitedHealth said that it is expanding temporary funding to support doctors and other care providers affected by the attack. The federal government is temporarily offering advance payments for some Medicare claims, according to the (AP).
- The US Department of Justice, the Federal Trade Commission, and the US Department of Health and Human Services said in early March that they are investigating how certain transactions in the healthcare sector may increase consolidation and boost corporate profits at the expense of patient health, worker safety, quality of care, and affordability. The agencies have issued a request for information, seeking public comment on deals conducted by health systems, private payers, private equity funds, and other alternative asset managers that involve healthcare providers, facilities, or ancillary products or services. Research shows the competition in healthcare provider and payer markets leads to higher-quality and lower-cost healthcare, as well as greater access to care and higher wages and benefits for workers, agency officials said.
- Wait times for rehabilitative therapy are generally long across the nation, with reports of patients waiting weeks or even months for appointments while dealing with ongoing pain or post-surgical rehabilitation, according to the American Physical Therapy Association (APTA). The issue is particularly acute in rural areas and places with a high cost of living, like California, which has a lower ratio of therapists to residents — just 57 per 100,000, compared with the national ratio of 72 per 100,000. The industry hasn't recovered from the mass exit of physical therapists from the industry as practices closed during the pandemic, according to health data analytics firm Definitive Healthcare. More than 22,000 physical therapists — almost a tenth of the workforce — left their jobs in 2021 alone. The job vacancy rate for therapists in outpatient settings was 17% in 2022, according to the (APTA).
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.