March 31, 2022
Marketdata LLC has just released a new 86-page report that examines the $34 billion U.S. Physical Therapy Clinics Industry. This is a completely revised and updated edition that builds on a 2018 analysis.
$34 Billion Physical Therapy Market Recovers From 16% Revenue Decline During Pandemic
Demand for physical therapy services is growing, for several reasons: an aging American population, rising obesity levels, consumers seeking alternatives to opioids for pain management, and the cost savings and effectiveness of outpatient rehab.
This is a fragmented but growing $34 billion per year industry of small physical therapy clinics, and a few large chains. Throughout the pandemic, physical therapy services have been treated as essential by federal, state, and local guidance, although many physical therapists proactively stopped nonessential in-person care. Physical therapy clinics that stayed open during the early stages of the pandemic had fewer consumers walking through their doors. Clinics pivoted to telehealth/video visits but patient volumes remained low in 2020.
Here are some things to know about this healthcare sector:
Market Value… Marketdata estimates that the U.S. physical and occupational therapy industry was worth $34.2 billion in 2021, up 12.6% from 2020. Revenues dipped 16% to $30.4 billion during the pandemic in 2020. The market is forecast to grow at a 6.2 % average annual pace, to $43 billion by 2025.
Clinic Metrics… There are an estimated 42,300 clinics providing physical therapy, occupational therapy, speech therapy and audiology. Average annual receipts per clinic are $855,000, with a net profit margin of 14%.
Therapists… The industry employs 417,000 workers and the average physical therapist earns $91,000/year. Two-thirds of physical therapists are female.
Pivot to Virtual Care… Video-based care was being provided by just 2% of physical therapists prior to the pandemic, but one year later nearly half were providing some form of telehealth.
Market Share… This industry has been consolidating for years, yet private practice remains very fragmented. The 50 largest companies—two public operators and private equity-backed operations—captured just 29 percent of the industry’s market share. The potential for “roll-ups” is high.
Large Chains… Four competitors, large chains: Select Medical, ATI Physical Therapy, U.S. Physical Therapy, and Athletico, had combined revenues of $3 billion in 2021.
About The Report
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.
U.S. Physical Therapy Clinics: An Industry Analysis, published in April 2022, is an independently researched “off-the-shelf” study. The study is 86 pages in length, contains 32 tables & charts, 9 competitor profiles, and is priced at $995. Available in Pdf or MS Word format. A free table of contents is available by email or at the Marketdata website. Contact: Marketdata LLC, 7210 Wareham Drive, Tampa, FL 33647, (813) 971-8080. John LaRosa is available for interviews.
To Order: Go to the Marketdata store on this website and choose report FS 69 (price: $995). A 21-page Overview Summary (highlights of all chapters in the larger report) is also available for $99 (report OV 60).