The aging population, healthcare reform and economic recovery will support growth.
New York, NY (PRWEB) November 08, 2014
The Physical Therapy Rehabilitation Centers industry is comprised of both inpatient and outpatient therapy facilities that provide physical, speech pathology and occupational therapy services. In the five years to 2014, the industry experienced revenue growth as a result of the aging population and increasing acceptance of the benefits of physical therapy services. “The number of adults aged 65 and older has helped support industry revenue growth during the period,” according to IBISWorld Industry Analyst Will McKitterick. Seniors are more likely to require physical therapy services because of injuries, illnesses and a range of other chronic conditions. Over the past five years, industry revenue increased at an annualized rate of 1.5% to $25.6 billion.
Though the overall economy suffered, the negative implications of the recession left the industry fairly unscathed because physical therapy rehabilitation centers derive a large share of revenue from Medicare reimbursements. “Instead of an overall decline in revenue, the industry experienced a rapid rate of consolidation,” says McKitterick. The number of industry establishments fell at an average annual rate of 2.1% to 24,907. The trend of consolidation was likely triggered by the 6.0% decline in Medicare reimbursements in 2011, which was followed by further reduction in 2012. The decline in reimbursements prompted industry revenue to contract in 2012, but revenue rebounded with 3.0% growth in 2013 and is expected to grow by as much as 2.4% in 2014.
Continued expansion of the aging population, healthcare reform and economic recovery are expected to support industry revenue growth in the five years to 2019. The number of seniors is expected to rise in the five-year period, indicating increasing demand for physical therapy services. Moreover, the implementation of healthcare reform is expected make private health insurance more accessible and affordable, allowing more people to receive treatment and therapy. Yet, the uncertainty surrounding Medicare reimbursement cuts lingers, since Congress has repeatedly postponed their decision to make reductions.
For more information, visit IBISWorld’s Physical Therapy Rehabilitation Centers in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes freestanding rehabilitation hospitals, acute care hospitals with inpatient rehabilitation centers and outpatient rehabilitation centers that provide physical, occupational or speech therapy services. Outpatient facilities are also referred to as comprehensive outpatient rehabilitation facilities. This report excludes drug, alcohol and other rehabilitation services.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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