Scope and Importance

The Physical Therapists industry has benefited in the past five years from an aging population and increased prevalence of chronic diseases, both of which have expanded demand for industry services. Additionally, higher rates of private health insurance resulting from federal healthcare reform have made industry services affordable to more of the population. Despite expanding revenue, however, physical therapists have faced significant cost pressures, and consolidation and specialization within the industry have increased. Furthermore, Medicare reimbursement caps and cuts could present an impediment to industry growth in the five years to 2021. The U.S outpatient rehabilitation market is estimated to be a $19 billion industry with a projected annual growth rate of five percent or higher. The sector is also highly fragmented, with no company controlling significant market share.

• Outpatient rehabilitation is a $29.6 billion industry that is expected to grow 7% annually through 2018P. Physical therapy accounts for an estimated $26.6 billion, or approximately 90%, of all outpatient rehabilitation spending. Highly fragmented with largest 50 competitors comprising less than 25% of the market
• Numerous, positive factors driving long-term growth:
• Expanding patient population that provides favorable tailwinds:
• Aging U.S. population
• Increasing penetration of physical therapy services
• New government regulations (e.g., the PPACA) increasing patient access to physical therapy
• Outpatient rehabilitation is significantly less costly than surgery or hospitalization, but with similar clinical effectiveness.

Organizations involved in Physical therapy

Top Companies