U.S. Physical Therapy Clinics: An Industry Analysis

U.S. Physical Therapy Clinics: An Industry Analysis

This analysis by Marketdata examines the $34 billion outpatient physical and occupational therapy centers industry. Speech therapy and audiologists are also included. The physical therapy business is highly fragmented, with the 50 largest competitors capturing only 29% of the revenues, which makes it ripe for consolidation.

While there are a few national companies, the industry consists predominantly of small to medium regional providers with annual revenue of slightly over $1 million.
This industry is experiencing increased M&A activity from both strategic suitors and private equity investors.
Physical therapists work in hospitals, private practices, outpatient clinics, people’s homes, schools, sports and fitness facilities, work settings, and nursing homes.
This new study by Marketdata examines the nature of the industry, national receipts/growth from 2007 to 2025 forecast, effects of the Covid-19 pandemic on 2020-2021 operations and revenues, customer and therapist demographics, key industry trends, industry structure and extensive operating ratios (national and state Census data for establishments and firms), industry regulation, top companies market share, consolidation and roll-up potential, insurance/Medicare reimbursement trends, and more.

In-depth Competitor Profiles provided for: U.S. Physical Therapy, ATI Physical Therapy, Select Medical, Athletico Physical Therapy (Incl. Pivot Physical Therapy), CORA Health Services, Professional Physical Therapy and PT Solutions.

Report Scope and Methodology
Sources and methodology used for the report, report scope.
Nature & Structure of the Industry
Definition and number of physical therapists, occupational therapists, speech therapists, and audiologists and what they do, who they work for and where.
Demographic profile of physical therapists.
Major industry trends and issues: diversification, technology changes, consolidation and the potential for roll-ups, increased patient engagement tools, merit-based incentives
Industry structure: key metrics: no. of facilities, receipts, annual payroll, no. of employees, avg. receipts per facility – 2002, 2007, 2012, 2017
Main operating models used by physical therapy centers
Major findings of Harris Williams & Company report (Physical Therapy Market Overview, September 2021)
Factors affecting demand for physical therapy (aging population, obesity, economic rationale)
Operations: sources of revenue, typical patient volumes, revenues per patient visit, physical therapist salaries, facility profit margins, payor mix, etc.
Reimbursement situation under Medicare, fee caps, Bipartisan Budget Act of 2018
Occupational therapist overview, typical earnings, job outlook
Audiologists profession overview, typical earnings, job outlook, major statistics on hearing loss
- Sample Profit & Loss Statement for an Average Physical Therapy Center: 2021
- Physical Therapy Industry Snapshot: 2017, 2012, 2007, 2002
- U.S. Physical Therapy company Gross Profit margins: 2007-2021
- Number of Medicare Non-institutional Providers: 2013-2019
Market Size, Growth, Forecasts
Estimates of $ industry size and growth published by other research firms (Harris Williams Co. Health Value Group)
Size / Receipts of Physical Therapy Services from 2007-2019, official government Census 5-year survey data and annual County Business Patterns data
Marketdata estimates & forecasts of receipts for 2020, 2021, 2022, 2025 F, weighted avg. sales declines & gains for three large PT chains/companies in 2020, 2021
Discussion & analysis of the effects of Covid-19 pandemic on operations and sales, findings of American Physical Therapy Assn. August 2020 report: Impact of Covid-19 on The Physical Therapy Profession, and May 2021 report (revenue losses, patient volumes, telehealth use).
Discussion of major factors affecting industry growth: reimbursement, demand, aging of population, obesity, supply of therapists, etc.
- $ Size of the U.S. Physical Therapy Market: 2007-2025
- Annual Growth Rate of the Physical Therapy Market: 2007-2021
- Forecast Size of the U.S. Physical Therapy Market: 2022, 2025
Customer Demographics
- Discussion and statistics related to population aging trends
- Discussion and statistics related to sports injuries
- Discussion and statistics related to back pain
- Discussion and statistics related to workplace injuries
- Discussion and statistics related to obesity trends
Prevalence of obesity in the U.S. by state and region: 2000-2019
Industry Economic Operating Ratios
Summary of key industry metrics, NAICS code for the industry, what it includes
- Industry snapshot: 2002, 2007, 2012, 2017: key ratios (payroll, no. estabs., receipts, Avg. receipts per estab.)
- Annual % change in receipts: 2007-2019
Industry ratios (no. of firms, establishments, receipts, payroll as % receipts) by:
• Labor Productivity Ratios: 2007-2019
• Receipts, by Type of Patient Care: 2019
• Legal form of organization -corporations, sole proprietorships, partnerships: no. of employees) – 2012, 2017
• Single vs. multi-unit operations, by size (statistics as above) – 2012, 2017
• Concentration Ratios: ratios for top 4, 8, 20, 50 largest firms – 2012, 2017
• Receipts size of establishments (under $10,000 to $10+ mill.) – 2012, 2017
• Receipts size of firms (under $100,000 to $100+ mill.) – 2012, 2017
• Ratios, by Employment Size of Establishments: 2019
• No. of establishments, receipts & avg. receipts per establishment, by state: 2016
• No. of establishments, receipts & avg. receipts per establishment, by state – 2019
Competitor Profiles
(description and history of company, no. of clinics operated, address, specialties, acquisitions, services, financial data when available)
• U.S. Physical Therapy (public co. - detailed financials incl.)
• ATI Physical Therapy (public co. - detailed financials incl.)
• Select Medical
• Athletico Physical Therapy (incl. Pivot Physical Therapy)
• PT Solutions
• CORA Health Services
• Professional Physical Therapy
Reference Directory
List of physical therapy national/regional trade associations, journals, consulting firms, reports, articles, other key contacts – address & phones, description of activities.

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