U.S. Physical Therapy Market Worth $34 Billion

Industry Recovers From 16% Revenue Decline During Pandemic

Tampa – WEBWIRE – Thursday, March 31, 2022

New Industry Study

Demand for physical therapy services is increasing."

April 1, 2022: Marketdata LLC, a leading independent market research publisher of “off-the-shelf” studies about service industries since 1979, has released a new 86-page study: U.S. Physical Therapy Clinics: An Industry Analysis . This is a complete analysis and forecast for physical therapy services—the nature and economic structure and size of the market, key issues, trends, effects of the pandemic, and competition.

“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.”, according to Research Director, John LaRosa.

Major Findings:

* 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.

* 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%.

* The industry employs 417,000 workers and the average physical therapist earns $91,000/year. Two-thirds of physical therapists are female.

* 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.

* The demand for occupational therapists is rising, with job growth expected to increase 21% from 2020 through 2030. 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 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.

* Four competitors, large chains: Select Medical, ATI Physical Therapy, U.S. Physical Therapy, and Athletico, had combined revenues of $3 billion in 2021.

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

“This is a fragmented but growing industry of 42,000 mostly small physical therapy clinics, and a few large chains. Demand is growing due to an aging American population, rising obesity, consumers seeking alternatives to opioids for pain management, and the cost savings and effectiveness of outpatient rehab.”, according to Research Director, John LaRosa.

About The Report

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: See the Marketdata website and store, choose report FS 69. A $99, 21-page Overview Summary report is also available (report OV 60).

About Marketdata LLC

Marketdata is a private market research and consulting firm that has specialized in the tracking and analysis of a wide variety of service industry and healthcare sectors. The company also provides custom research and consulting services, and holds teleconference calls. It has a 32-year specialty tracking the weight loss market. The company’s websites are: www.marketdataenterprises.com and www.DietBusinessWatch.com.