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 27,400 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 27,400 companies, employs about 386,700 workers, and generates about $36 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
                                Source: Vertical IQ and Inforum

                                Recent Developments

                                Nov 11, 2022 - Virtual Physical Therapy Use, Satisfaction Lower Than In-Person
                                • Virtual physical therapy patients at a single rehabilitation center studied were 14.1% less likely to recommend visits compared to in-person patients, according to a study published in the Orthopaedic Journal of Sports Medicine. Researchers found that virtual physical therapy patients were less satisfied with treatment than those who received care in person despite the benefits associated with telehealth use. Researchers noted that telehealth PT patients were often older, female, White, spoke English as a first language, and were Medicare beneficiaries. Patients who participated in telehealth therapy tended to live in out-of-county and small-town areas rather than in urban communities.
                                • The US Department of Health & Human Services (HHS) has renewed the Public Health Emergency (PHE) declaration for COVID 19 for another 90 days, beginning on October 13 (the date the PHE was previously scheduled to expire) and extending through January 11, 2023. The emergency measure linked to the PHE that may be of most interest to rehabilitative therapy practices is coverage of telehealth services. Medicare and Medicaid coverage of telehealth services was extended immediately. PHE renewals keep in place flexibilities under Section 1135 waivers, such as the expanded use of telehealth. They also extend public aid programs. HHS will provide states with 60 days notice prior to the termination of the PHE. Prior PHE renewals gave HHS the discretion to terminate the PHE at any time. Waiver of cost-sharing for medical and behavioral telehealth services by health insurers is likely to be extended again by insurers.
                                • Patients who were referred to physical therapists within 2 weeks of seeing their primary physician for lower back pain were significantly less likely to make visits to a chiropractor, pain specialist, or orthopedist, according to the study published in BMC Health Services Research. After adjusting for sex, age, and Charlson Morbidity Index, patients who received physical therapy were about half as likely as those who didn't to see chiropractor or a pain specialist or have an emergency department visit within 30 days of their initial appointment. The cost of claims was lower for patients who received early PT ($747 vs $799), the researchers found.
                                • Legislation introduced in the US Congress would make it more convenient for Medicare Part B beneficiaries to see a licensed physical therapy assistant (PTA) or occupational therapy assistant (OTA). PTAs and OTAs working in private practice cannot currently see their patients without their supervisors physically on site at all times. The proposed legislation would let skilled professionals care for their patients, even if their supervisor cannot be there in person.
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