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        Rehabilitation Therapy Services Industry Profile

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        Excerpt from 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 more than 650,000 physical therapists and about 580,000 occupational therapists, according to the World Confederation for Physical Therapy (WCPT) and the World Federation of Occupational Therapists (WFOT). North America, Europe, and Asia are the primary markets for the industry, but demand is high in regions such as Africa where access to health care is limited.

        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 highly fragmented: the top 50 companies account for about 25% of revenue.

        Therapy practices compete with similar services provided by hospitals, physician offices, nursing homes, ...

         
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