Rehabilitation Therapy Services Industry Profile

Companies in this industry provide physical therapy and other treatment and activities to help patients regain or improve mental or physical functionality following an injury or illness. Major companies include Select Medical, Select Rehabilitation, and US Physical Therapy (all based in the US).

Globally, there are about 1,600,000 registered physical therapists and about 600,000 occupational therapists, according to Cross River Therapy and the World Federation of Occupational Therapists (WFOT).

The rehabilitation therapy industry in the US consists of about 41,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $32 billion.

COMPETITIVE LANDSCAPE

Demand is driven by demographics and medical advances that increase patient survival rates and prolong life. The aging of populations in global nations including the US is leading to increased demand for rehab services. The profitability of individual practices depends on efficient use of personnel. Large companies have some economies of scale in financial and administrative systems. Small companies compete by developing positive relationships with local health care providers and delivering superior customer service. The US industry is fragmented: the 50 largest firms account for about 30% of revenue.

Therapy practices compete with similar services provided by hospitals, physician offices, nursing homes, home health care services, chiropractors, and educational institutions that employ their own therapists. Strong growth in demand can lead to competitive hiring practices in markets where skilled therapists are in short supply.

Some rehabilitation ...