An aging population and greater insurance coverage will boost physical therapy demand.
Los Angeles, CA (PRWEB) December 10, 2013
Over the past five years, demand for the Physical Therapists industry has increased as individuals have become aware of physical therapy's role in promoting health and wellness. An increasing number of individuals aged 50 and older has prompted industry growth; this demographic typically requires industry services to restore function, improve mobility, relieve pain and prevent or limit physical disabilities. Furthermore, many patients with chronic illness have used tailored wellness programs to enhance their quality of life, increasing demand for physical therapists. However, the poor economy slightly pressured revenue during the recession. In 2009, revenue growth slowed to 2.9% due to falling employment and disposable income, which made industry services less affordable. Hospitals have since attempted to lower their readmission rates to receive Medicare reimbursements through expanding the role of physical therapists to include teaching patients about the disease process and management, prescribing home exercise programs and creating a safe discharge plan.
Accordint to IBISWorld Industry Analyst Sarah Turk, “While therapy services provided by hospitals are excluded from this industry, hospitals may outsource therapy to independently operated therapists, which bolsters industry revenue.” As a result, industry revenue is anticipated to grow at an annualized rate of 6.1% to $29.8 billion during the five years to 2013, including a 3.7% rise in 2013, propped up by the growing elderly population requiring more industry services. Profit is also expected to rise, due to many therapists combining services with physicians and chiropractors, which strengthens their service offering and lowers operating costs.
Over the next five years, the industry will continue to grow, bolstered by the aging population, economic recovery and healthcare reform. However, “unfavorable changes in Medicare reimbursement rates may hamper industry profitability,” says Turk. For example, therapy caps have been developed but have yet to be implemented, which may limit the amount that Medicare will reimburse physical therapists. Despite this trend, healthcare reform will likely benefit the industry, due to reform making affordable health insurance coverage more accessible. The Physical Therapists industry is highly fragmented because it is difficult for a company to create a unique service offering that can be provided in bulk quantities; consequently, there are minimal benefits to growing in size.
For more information, visit IBISWorld’s Physical Therapists in the US industry report page.
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IBISWorld industry Report Key Topics
Operatiors in the Physical Therapists in the US industry include independent health practitioners primarily engaged in outpatient services. These services include administering medically prescribed rehabilitation for patients suffering from injuries or muscle, nerve, joint and bone disease; planning and administering educational, recreational and social activities designed to help patients or individuals with disabilities; and diagnosing and treating speech, language or hearing problems.
Key External Drivers
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Globalization & Trade
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