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
                                Source: Vertical IQ and Inforum

                                Recent Developments

                                May 18, 2024 - Moderate Sales Growth Expected
                                • 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. Rehabilitative therapy industry employment and average wages for nonsupervisory employees increased slightly during the first quarter of 2024, according to the US Bureau of Labor Statistics.
                                • The reclassification of New York state physical therapy assistants (PTAs) from a certified profession under New York State Education Law to a licensed profession became effective in 2024. Industry stakeholders hope that the reclassification will help address staffing shortages at rehabilitative therapy practices. "The elevation of PTAs from a certified to a licensed profession affirms their high level of professional skill and dedication to patients and their care and will serve to incentivize people to enter this growing and important health care field,” said Michael Tisbe, president of the American Physical Therapy Association, New York.
                                • The US Department of Justice, the Federal Trade Commission, and the US Department of Health and Human Services said 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.
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