Profit is expected to rise as many physical therapists combine their practices with those of physicians and chiropractors.
New York, NY (PRWEB) April 26, 2015
The Physical Therapy Rehabilitation Centers industry is composed of both inpatient and outpatient therapy facilities that provide physical, speech pathology and occupational therapy services. In the five years to 2015, the industry has 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 also helped support industry revenue growth during the period because seniors are more likely to require physical therapy services because of the increased prevalence of injuries, illnesses and chronic conditions in that age group. The industry has also benefited from the expansion of healthcare coverage under the Affordable Care Act. Over the five years to 2015, industry revenue is expected to increase at an annualized rate of 1.2% to $29.1 billion, including an increase of 0.9% in 2015 alone.
According to IBISWorld Industry Analyst Will McKitterick, “Although the overall economy suffered from the recession, the industry emerged from the downturn relatively unscathed because physical therapy rehabilitation centers derive a large share of revenue from Medicare reimbursements.” The industry is highly fragmented, with a large number of small private practices competing for revenue. “Profit is expected to rise as many physical therapists combine their practices with those of physicians and chiropractors,” says McKitterick. “This process strengthens their service offerings, increases their on-site patient referrals and lowers operating costs, such as expenditures for administrative and reimbursement procurement.”
The continued expansion of the aging population, healthcare reform and economic recovery are expected to support industry revenue growth in the five years to 2020. The number of seniors is expected to continue rising, which will increase demand for physical therapy services. Moreover, the further implementation of healthcare reform is expected make private health insurance more accessible and affordable, which will allow more people to receive treatment and therapy. These factors will raise demand for industry services, further boosting revenue.
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
Physical therapy rehabilitation centers are facilities that provide therapy and training for rehabilitation. Industry establishments include freestanding rehabilitation hospitals, acute care hospitals with inpatient rehabilitation centers and outpatient rehabilitation centers that provide physical, occupational or speech therapy services. 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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