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Physical Therapy Services Procurement Category Market Research Report from IBISWorld has Been Updated
  • USA - English


News provided by

IBISWorld Inc.

Jan 23, 2015, 04:00 ET

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An expanding senior population and healthcare reform have boosted demand and prices for physical therapy services.

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Los Angeles, CA (PRWEB) January 23, 2015 -- Physical therapy services have a buyer power score of 3.1 out of 5. This score reflects a mix of favorable and negative conditions that have influenced buyer negotiation power over the three years leading up to 2014. “During the period, demand for physical therapy services has picked up with the expansion of the senior population, healthcare reform efforts and an ongoing need to treat a range of chronic conditions or injuries that affect the general population,” says IBISWorld research analyst Anna Son. As a result, a surging demand has caused service prices to rise. With millions of previously uninsured individuals anticipated to acquire health insurance due to healthcare reform, buyers can expect prices to continue rising through 2017. Although increasing service prices are not favorable for buyers, low price volatility helps buoy buyer negotiation power by mitigating the risk of major price swings.

Market fragmentation also sustains buyer power. Many new vendors continue to enter the market to take advantage of the booming healthcare sector. “While buyers may use the competitive environment to try to leverage offers in their favor, their negotiation power may be weakened due to geographic barriers,” explains Son. The migration of physical therapists toward urban environments has also reduced the negotiation power of buyers located outside of densely populated areas. Operators in this market can obtain strong profit margins for their services, which may open up some opportunities for buyers to negotiate prices down, particularly when purchasing multiple services from a single supplier. Current major suppliers include Concentra Inc., HCA Inc., Kindred Healthcare Inc. and Tenet Healthcare Corp.

Some market factors that work against buyers include the high total cost of ownership, significant switching costs and high service specialization. Physical therapists typically provide customized treatment plans to address patients' unique health conditions, thus limiting buyer negotiation leverage. When purchasing physical therapy services, buyers should consider the cost of the initial evaluation and patient follow-up visits, which can substantially raise the total cost of ownership. These factors also make it difficult to switch suppliers because each physical therapist has a different methodology for treating patients and evaluating treatment progress. For more information, visit IBISWorld’s Physical Therapy Services procurement category market research report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of physical therapy services. Physical therapists are healthcare practitioners who help restore, improve and maintain the health and physical movement of patients who suffer from chronic or acute injuries and conditions. Physical therapy services may address a range of conditions, including back and neck strains, sprains, fractures, neurological disorders or other impairments related to motor function and body mechanics. Treatment may be administered through exercise routines, stretching techniques, heat application, orthotics or mild electrical current. Physical therapists also provide educational material to facilitate ongoing health and wellness beyond direct care. This report excludes occupational therapy services or speech therapy services.

  • Executive Summary
  • Pricing Environment

-- Price Fundamentals
-- Benchmark Price
-- Pricing Model
-- Price Drivers
-- Recent Price Trend
-- Price Forecast

  • Product Characteristics

-- Product Life Cycle
-- Total Cost of Ownership
-- Product Specialization
-- Substitute Goods
-- Regulation
-- Quality Control

  • Supply Chain & Vendors

-- Supply Chain Dynamics
-- Supply Chain Risk
-- Imports
-- Competitive Environment
-- Market Share Concentration
-- Market Profitability
-- Switching Costs

  • Purchasing Process

-- Buying Basics
-- Buying Lead Time
-- Selection Process
-- Key RFP Elements

  • Negotiation Questions
  • Buyer Power Factors
  • Key Statistics

About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Gavin Smith, IBISWorld Inc., +1 (310) 866-5042, [email protected]

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