The demand for outpatient physical therapy is associated with the aging of the US population. A stable reimbursement environment, private equity investment, and the popularity of PT as an alternative to opioids in pain management all contribute to a positive outlook for 2030.
It’s a fragmented but growing $53 billion industry of small physical therapy clinics and a few large chains.
Here are some things to know about this healthcare industry:
- Market size: Marketdata estimates that the US physical and occupational therapy industry will reach $53 billion in 2024, up 6.4% from 2023 and growing 64% from 2020. The market is projected to grow at an average annual rate of 6.4% to reach $70 billion by 2030.
- PT clinical indicators: In the United States, 50,883 clinics provide physical therapy, occupational therapy, speech therapy, and audiology. The average annual revenue per clinic is $871,000, with a net profit margin of 14-20%. Payroll accounts for 49 cents of every sales dollar.
- Therapists: The industry employs 464,000 workers and the average physical therapist earns $99,700 annually. Two-thirds of physical therapists are women.
- PT deficiency: The high demand and low unemployment rate for physical therapists is largely due to the number of therapists retiring (about 49% of physical therapists were aged 50-64 in 2019, compared to 32% in 2010). The shortage of PTs is projected to average 16,000 per year by 2030.
- Market share: This industry has been consolidating for years, but private practice remains highly fragmented. The top 50 companies—two public service providers and private equity-backed operations—captured just 29 percent of the industry’s market share. The roll-up potential is high.
- Large chains: Six major chain competitors—Select Medical, ATI Physical Therapy, US Physical Therapy, PT Solutions and Athletico—had combined revenues of $4.07 billion in 2024 and operated 4,949 clinics (the industry’s total 9.7 %-the). Managers were actively involved in acquisitions.
Where to find out more
Be sure to read the 99-page report for more detailed information US physical therapy clinics: an industry analysis by Marketdata. This new study analyzes industry characteristics, revenue growth, client and therapist demographics, key industry trends, operating ratios, industry regulations, market share and key competitors.
About the author: It is chaired by John LaRosa Marketdata LLC and author of over 100 industry and market studies. His research appears in leading media such as ABC, CNN, Fox, Forbes, USA Today, The Wall Street Journal, The New York Timesand various trade journals.