Rehabilitative Therapy Practices NAICS 621340
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Industry Summary
The 30,400 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.
Recent Developments
Apr 1, 2025 - Workforce Shortage Expected To Continue
- 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.
- Global merger and acquisition (M&A) activity increased 18% year over year in Q3 2024 to $582 billion, according to GlobalData. M&A activity decreased 15% year over year during the second quarter of 2024. The combination of high interest rates, current valuations, and political uncertainty have negatively impacted M&A activity, according to GlobalData, but a rebound may be underway as 2024 closes. "Prospects of rate cuts in certain markets and an overall improving global growth outlook could drive increased activity," said Priya Toppo, Analyst at GlobalData's Thematic Intelligence. "However, mega deals will continue to face significant challenges, especially in the US, where antitrust concerns are a key focus for regulators.” The outpatient physical therapy industry remains highly fragmented and vast compared to other healthcare services sectors experiencing investment and consolidation activity, according to M&A advisory firm Provident Healthcare Partners.
- Rehabilitative therapy industry employment and average wages for nonsupervisory employees increased slightly during the first month 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 2024 to 2028, 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 15 workers, and generates $1.3 million annually.
- The rehabilitative therapy industry consists of 30,400 companies, employs about 470,000 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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