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
Nov 15, 2023 - 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. Employment levels increased slightly during the first eight months of 2023 while average wages for nonsupervisory employees decreased slightly.
- More people are incorporating annual visits to physical therapists into their wellness regimens to help them maintain movement and functionality, according to Tyra Mitchell, a doctor of physical therapy and professor of exercise science in the Tulane School of Professional Advancement. Mitchell says that the concept of routine physical therapy visits is becoming more mainstream, and some doctors are referring patients to physical therapists before they have problems with joints, mobility, or balance. The discussion during a routine physical therapy visit will center on the person’s current lifestyle and whether they have mobility problems that are limiting their activities. The physical therapist will assess all aspects of movement in a way that is individualized to a person’s goals. “Physical therapists are trained to help people maintain a level of activity that they are happy with, whether that means taking a daily walk or being a weekend warrior who participates in physical exercise or activities a couple days out of the week,” Mitchell said.
- Patients who first seek physical therapy or chiropractic care have better outcomes and shorter episodes of acute care for low back pain, according to research published in the journal Physical Therapy. Clinical practice guidelines prioritize nonpharmacologic and nonsurgical treatments, though adherence to these guidelines has been lacking across the US, according to the researchers. Patients are often prescribed opioid pain medications or referred to specialists for procedures—including surgery, imaging, or steroid injections—that do not address the root causes of their pain. People who first sought specialty care (rheumatology, physiatry or pain management) were in pain for nearly twice as long as those who first went to the emergency department, chiropractic care, or physical therapy.
- Rehabilitative therapy practice owners feeling the effects of the highest interest rates since 2007 are looking for ways to maximize cash on hand while maintaining their practices with adequate staffing and the latest equipment and services, according to Chad Widensky, chief revenue officer at Provide, a financial technology firm focused on health-care providers. Key cash-maximizing activities include regular fee schedule updates, offering financing options to patients, using a customized credit card built specifically for the industry that includes a reward system tailored to frequent purchases, and evaluating institutions that can provide higher rates of return on savings balances to help offset higher interest rates on debt.
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