U.S. Physical Therapy Clinics Take In $34 Billion

Tampa FL, June 19, 2019:   Marketdata LLC, a leading independent market research publisher of “off-the-shelf” studies about service industries since 1979, has released a new 71-page study: U.S. Physical Therapy Clinics: An Industry Analysis. This is a complete analysis and forecast for physical and occupational therapy services—the nature and structure and size of the market, key issues, trends, and competitors.

“This is a fragmented but growing industry of small physical therapy clinics, and a few large chains. Demand is growing due to an aging American population, rising obesity, and the cost savings and effectiveness of outpatient rehab.”, according to Research Director, John LaRosa.

Major Findings:

 Market Value…  Marketdata estimates that the U.S. physical and occupational therapy industry was worth $34.5 billion in 2018, up 6.2% from 2017. The total market is forecast to grow at a 6.2 % average annual pace, to $45.7 billion by 2023. Revenue growth has been steady since 2007.

There are an estimated 38,800 clinics providing physical therapy, occupational therapy, speech therapy and audiology.  Average annual receipts per clinic are $886,000, and they have a 14.6% net profit margin.

The demand for occupational therapists is rising, with job growth expected to increase 27% from 2014 through 2024. Early hospital discharge practices foster greater demand for outpatient physical therapy services, and PT clinics believe that their therapy services provide a cost-effective way to prevent short-term disabilities from becoming chronic conditions.

This industry has been consolidating for 10+ years, yet private practice remains very fragmented. The 20 largest companies—two public operators and eight private equity-backed operations—captured just 21 percent of the industry’s market share. The potential for “roll-ups” is high.

The principal sources of payment for the clinics’ services are managed care programs, commercial health insurance, Medicare/Medicaid and workers’ compensation insurance.

Physical therapists earned an average of $79,850 in 2017, and projections by the Labor Dept. reveal that physical therapists are expected to see job growth of 28% through 2024. The median pay for occupational therapists was $84,270 in 2018, and job growth is expected to increase 27% from 2014 through 2024.

There were 24,342 physical therapy companies of firms operating in the United States in 2012. Of this tally, 94.2% were single-unit operations that captured 54.4% of industry receipts.

In 2012, of all the companies in this industry, 68% of them had annual revenues less than $1 million.

“Physical therapy services still provide a cost-effective way to prevent short-term disabilities from becoming chronic conditions, to help avoid invasive procedures, to speed recovery from surgery and musculoskeletal injuries and eliminate or minimize the need for opioids.”, according to Research Director, John LaRosa.


About The Report

 U.S. Physical Therapy Clinics: An Industry Analysis, published in June 2019, is an independently researched “off-the-shelf” study.  The study is 71 pages in length and costs $995.  Available in pdf format. A free table of contents is available by email Contact: Marketdata LLC, 7210 Wareham Drive, Tampa, FL  33647, (813) 971-8080. John LaRosa is available for interviews.

To Order: See Markedata's Online Store, Report # FS69, or $99 Overview #OV60

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