Occupational Therapists in the US Industry Market Research Report from IBISWorld Has Been Updated

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Occupational therapists have benefited in recent years from increased insurance coverage of their services. For this reason, industry research firm IBISWorld has updated a report on the Occupational Therapists industry in its growing industry report collection.

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Profit is expected to rise, driven by the expansion in many states of coverage for industry services.

Healthcare reform has benefited the Occupational Therapists industry in the past five years by requiring Medicare and Medicaid to cover preventive services, which may include occupational therapy (OT). Overall, Medicare and Medicaid cover OT for beneficiaries, so long as industry services are required to prevent, diagnose or treat an injury, condition or illness. States that have expanded Medicaid eligibility have been required to cover OT as an essential health benefit (EHB). According to IBISWorld Industry Analyst Sarah Turk, “Occupational therapists have been able to provide rehabilitative services, even if private health insurers did not cover this service in previous years, effectively expanding the industry's scope of care.” However, in 2015, Medicare's coverage of occupational therapy is capped at $1,940, constraining the industry's revenue growth.

In 2012, many states adopted EHB benchmark plans, with each state choosing its own model for services covered by small group and individual health insurance plans. Thanks to autism reform legislation, 40 states now require health insurers to cover OT for patients with autism, providing a boon to the industry. During the five years to 2015, industry revenue is expected to grow moderately, partly due to the Protecting Access to Medicare Act of 2014. This law, effective through March 31, 2015, has extended the exemption process for Medicare beneficiaries that have exceeded their outpatient therapy cap. “Profit is expected to rise, driven by the expansion in many states of coverage for industry services,” says Turk. “However, therapy caps and malpractice claims have still pressured industry profitability.”

During the five years to 2020, industry revenue is forecast to grow more quickly. The burgeoning elderly population will bolster demand for industry services, namely OT for individuals with Alzheimer's disease and arthritis as well as stroke patients. As healthcare insurance providers seek to cut costs, many will provide favorable reimbursements for noninvasive outpatient treatment options, including OT.

For more information, visit IBISWorld’s Occupational Therapists in the US industry report page.

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IBISWorld industry Report Key Topics

This industry includes independent health practitioners who help individuals with physical, mental or developmental conditions with daily living and working through everyday activities (occupations). More specifically, occupational therapy includes: helping children with disabilities to participate fully in school and social situations; helping individuals recovering from injury to regain skills; and providing support for individuals experiencing physical and cognitive changes.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld 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.

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Gavin Smith
IBISWorld
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