U.S. Physical Therapy Services Market Size, Share & Trends Analysis Report By Settings (Hospitals, Outpatient Clinics), By Application (Orthopedic, Women Health), By Payer (Public, Private Insurance), And Segment Forecasts, 2023 - 2030

Report Overview

The U.S. physical therapy services market was valued at USD 44.8 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 3.56% from 2023 to 2030. Physical Therapy (PT) is witnessing high demand in the U.S. due to significant cost savings, growing cases of sports injuries, and the rising prevalence of chronic pain. In addition, favorable reimbursement policies, a growing awareness about the benefits of occupational and physical therapies, and a rising number of physical therapists are contributing to the adoption of these services. Moreover, it is a growing profession in the U.S.

According to the American Physical Therapy Association, there were 312,716 licensed physical therapists in 2019. California, Texas, and New York have the highest number of physical therapists. The use of PT to improve the quality of life of individuals suffering from a variety of diseases, including musculoskeletal, cardiovascular, sports injuries, and others, is a significant factor contributing to the growth of the industry. The therapists provide an array of treatments to help alleviate, avert, and manage the conditions. In addition, these therapies prevent temporary impairments from becoming chronic conditions.

According to the U.S. Bureau of Labor Statistics, 2.6 million nonfatal workplace injuries and illnesses occurred in 2021 in the private sector. Approximately 2.7 people per 100 workers were injured on the job. It is anticipated that the increasing cases of workplace-related injuries will boost the demand for occupational therapies, thereby driving industry growth. The COVID-19 pandemic had a significant effect on the industry. Cancellation of non-essential procedures, a decline in patient numbers, and temporary closure of outpatient PT clinics hampered the industry.

According to a report by the Center for Health Workforce Studies, between 65 and 72% of elective surgeries were temporarily halted or canceled in March and April of 2020 compared to the same period in 2019. Orthopedic procedures requiring physical therapy, such as knee and hip replacements, were the most frequently postponed or rescheduled procedures. Despite lockdowns, telerehabilitation has been very useful in providing virtual care to patients. Moreover, due to the COVID-19 emergency, policy modifications have enabled a rise in telehealth adoption. In March 2020, legislation changes permitted physical therapists to bill Medicare for telehealth services at the same rate as in-person services.

Application Insights

The orthopedic therapy segment dominated the industry with a share of more than 58.50% in 2022. The growth of the segment can be attributed to the increasing prevalence of musculoskeletal disorders, active participation in sports activities, and rising incidence of sports injuries & fractures. According to the Osteoarthritis Action Alliance (OA), osteoarthritis affects an estimated 54.4 million adults in the country. This figure is expected to reach 78 million by 2040. The geriatric therapy segment is expected to register the fastest growth rate over the forecast period. The country’s growing elderly population presents a large patient pool.

Pain is the most common complaint among the elderly population. Similarly, the incidence of falls is also common among them. According to data published by the Centers for Disease Control and Prevention (CDC), chronic pain affected 20.4% of the adult population in the United States. The neurological and pediatric therapy segment accounted for a significant market share in 2022. Twenty million Americans suffer from neuropathy, and 16% of U.S. households have a member with brain impairment. According to the Federal Interagency Forum on Aging-related Statistics, 35.8% of those aged 85 years and above have moderate or severe memory impairment.

Settings Insights

Based on the settings, the industry has been segmented into outpatient clinics, hospitals, home healthcare, and others. The outpatient clinics segment accounted for the maximum share of more than 50.50% in 2022. Most of the therapists are working in private clinics, followed by hospitals and home healthcare agencies. The rapid shift toward outpatient clinics and significant cost savings are rendering high growth to the segment. In November 2022, Physical Rehabilitation Network, a company with over 200 clinics, announced the launch of its first outpatient PT clinic in Escondido, California. The homecare settings segment is projected to register the second-highest growth rate during the forecast period.

Homecare settings are a practical, cost-effective, and convenient choice for patients with mobility difficulties High adoption of telerehabilitation services, increasing preference for homecare services due to convenience, and favorable reimbursement coverage are anticipated to drive the segment further. The increasing volume of surgical procedures, especially orthopedic surgeries, in hospitals is propelling segment growth. Moreover, an increase in the number of individuals with chronic diseases and impairments will support the hospital segment. The increasing number of procedures for cardiovascular, orthopedic, and neurological problems is also expected to contribute significantly to the segment’s growth.

Payer Insights

On the basis of payers, the industry has been further categorized into public insurance, private insurance, and out-of-pocket. In 2022, the private insurance segment accounted for the largest share of more than 57.65% of the overall revenue. Increasing collaboration activities between private health insurance firms, corporates, and healthcare facilities are responsible for the dominant position of the segment. In addition, the segment is anticipated to expand as a result of various initiatives by private insurers to cover occupational injuries.

According to a report by the U.S. Census Bureau, an estimated 91.4% of the U.S. population had health insurance in 2020, with 66.5% of the insured covered by private insurance plans. Thus, the rising number of private insurance policyholders in the nation is projected to fuel the segment growth. Favorable policies by Medicare and Medicaid to cover necessary services required by the elderly population and increased affordability are likely to boost the growth of the public insurance segment. The rising number of beneficiaries under Medicare & Medicaid and improving access to public health coverage are also favoring segment growth.

Key Companies & Market Share Insights

The industry is highly fragmented with the presence of various solo, medium, and large players. U.S. Physical Therapy, Inc., Select Physical Therapy, and ATI Physical Therapy are leading the market in terms of the number of clinics. Facility expansion, strategic partnerships, and increased emphasis on inorganic growth initiatives are key strategies followed by these players to strengthen their market position. In addition, other competitors are continually engaging in strategic expansion projects to build their footholds in new markets. During the first quarter of 2022, Ivy Rehab, a national leader in outpatient pediatric therapy and musculoskeletal rehabilitative treatments, increased its footprint by adding 12 outpatient clinics. Some of the prominent players in the U.S. physical therapy services market include:

• U.S. Physical Therapy, Inc.

• Select Physical Therapy

• ATI Physical Therapy

• Athletico Physical Therapy

• Drayer Physical Therapy Institute

• NovaCare Rehabilitation

• Professional Physical Therapy

• CORA Health Services, Inc.

• PT SOLUTIONS

• Boston Children’s Hospital

U.S. Physical Therapy Services Market Report Scope

U.S. Physical Therapy Services Market Segmentation

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the U.S. physical therapy services market report based on application, payer, and settings:

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Orthopedic Therapy

  • Geriatric Therapy

  • Cardiopulmonary Therapy

  • Pediatric Therapy

  • Neurological Therapy

  • Women’s Health

  • Others

• Payer Outlook (Revenue, USD Million, 2018 - 2030)

  • Public Insurance

  • Private Insurance

  • Out of Pocket

• Settings Outlook (Revenue, USD Million, 2018 - 2030)

  • Hospitals

  • Outpatient Clinics

  • Home Healthcare

  • Others