"Designing Growth Strategies is in our DNA"
The U.S. occupational & physical therapy services market size was valued at USD 49.19 billion in 2022. The market is projected to grow from USD 53.08 billion in 2023 to USD 92.38 billion by 2030, exhibiting a CAGR of 8.2% during the forecast period.
The U.S. has recently witnessed a steep demand for occupational & physical therapy solutions. These services are crucial in alleviating the quality of life of individuals suffering from cognitive disabilities, movement disorders, chronic pain, and injuries. Moreover, these therapies aid in preventing short-term disabilities from turning into chronic conditions. The growing prevalence of chronic diseases in the U.S. and the growing awareness about the increasing number of sports injuries are primarily responsible for augmenting market growth.
Additionally, favorable reimbursement policies, the growing number of occupational and physical therapists in the country, and increasing awareness about the benefits of occupational and physical therapies support the adoption of these services.
Market Growth Hampered Due to Reduction in Patient Visits amid COVID-19 Pandemic
The COVID-19 pandemic adversely affected the U.S. market in 2020. Reductions in patient visits to outpatient rehabilitation clinics due to the imposition of stringent lockdown regulations in the nation is one of the key factors that affected the market during the pandemic. Furthermore, a sharp decline in hospital visits due to a temporary halt in elective and non-emergency procedures disrupted the demand and supply of these services. In addition, most of the occupational & physical therapy clinics were closed due to the strict lockdown. Moreover, the impact of COVID-19 affected the business of the key players operating in the market.
However, the market experienced a strong rebound during the post-pandemic period and is expected to grow at a steady growth rate attributed to the relaxation of the COVID-19 lockdown and increased adoption of telehealth tools in public and private practices. Additionally, the increase in patient influx observed by the players to seek occupational and physical therapy also supported the growth.
Growing Emphasis on Patient Engagement Integrated with Wearable Technologies Adoption to Drive Market Growth
The occupational & physical therapy service providers are adopting advanced technologies and rehabilitation gyms for patient retention and engagement. Many rehabilitation centers are opening gyms for patients so that they remain healthy after being discharged from hospitals.
Furthermore, the increasing adoption of wearable devices and telehealth services improved patient engagement. The requirement of physician face-to-face visits at least three days a week may be fulfilled using telehealth. Most occupational and physical therapists in the U.S. offer telehealth services after COVID-19 to treat patients. According to the report published by the American Physical Therapy Association, 98.0% of physical therapists were not offering telehealth consultations with patients before the COVID-19 emergency. However, after July 2020, more than 47.0% reported using telehealth, and the number is anticipated to increase over the pandemic. Moreover, launching virtual occupational and physical therapy programs in the country also improves patient access.
Request a Free sample to learn more about this report.
Market Growth Propelled by Growing Prevalence of Chronic Disorders and Geriatric Population
The increasing prevalence of chronic diseases in the country drives market growth. The growing number of patients suffering from chronic diseases is anticipated to surge the demand for rehabilitation services, including OT and PT services, during the forecast period.
Moreover, the growing elderly population in the country is presenting a large patient pool requiring occupational & physical therapy services. Older people are susceptible to various chronic disorders. Also, falls are a common reason for seniors who require physical therapy. Thus, the rising aging population in the country is responsible for increasing OT and PT services adoption, augmenting the U.S. occupational & physical therapy services market growth.
Shifting Preference Toward Non-Opioid Alternatives for Pain Management to Propel Market Growth
Another important factor expected to drive market growth is the shifting preference of patients toward physical and occupational therapies instead of medication due to certain side effects associated with medication therapies. This factor and other serious issues, such as misuse of prescriptions, overdose, and related deaths due to opioids, are causing patients to shift from medications to occupational & physical therapy services. Furthermore, significant coverage provided by payors for non-opioid treatment for pain management has raised the demand for these services in the country.
Furthermore, the long-term benefits associated with physical therapies are anticipated to surge the demand for rehabilitation therapies, including occupational & physical therapy services. Additionally, the increasing patient pool suffering from chronic pain is anticipated to surge the demand for pain management solutions.
Moreover, the growing awareness about the benefits of physical and occupational therapy among patients influences the adoption of these services and is anticipated to drive the market growth during the forecast period.
Reimbursement Capping for Therapies to Impede Market Growth
The majority of the patients in the U.S. are dependent on medical reimbursements for healthcare expenses. The country's public and private insurance providers are instigating price capping on various physical and occupational therapies, which is anticipated to hamper the adoption of the occupational & physical therapy services during the forecast period.
Moreover, high claim denials associated with occupational and physical therapies are prominent factors restricting market growth. The primary reasons for claim denials are data entry errors, misuse of the modifier codes, failure to establish medical necessity, and eligibility issues. The increasing claim denial rates in the U.S. are accountable for restraining the adoption of occupational & physical therapy services.
Outpatient Clinics Segment to Hold Largest Share Owing to Increasing Workplace Accidents
Based on setting, the market is segmented into hospitals, outpatient clinics, and others.
The outpatient clinics segment is estimated to be the largest segment during the forecast period. The dominance of this segment is attributed to the increasing number of physical therapy outpatient clinics, the surge in the number of industrial accidents in the U.S., and the increasing demand for occupational & physical therapy services in the country.
The hospitals segment is expected to account for the second-largest market share and is anticipated to register a significant CAGR during the forecast period. The surge in the prevalence of chronic diseases and increasing collaborations between market players and hospitals offering physical and occupational therapies are major reasons driving the segment growth.
To know how our report can help streamline your business, Speak to Analyst
Orthopedic Therapy Segment Dominates the Market Owing to Increasing Prevalence of Orthopedic Diseases
Based on application, the market is segmented into orthopedic therapy, general therapy, geriatric therapy, pediatric therapy, neurological therapy, and others.
The orthopedic therapy segment dominated the U.S. market in 2022. The growing prevalence of orthopedic diseases and the increasing number of sports injuries are anticipated to drive segment growth. Moreover, increasing cases of bone fractures in the U.S. drive the segment growth.
Moreover, the general therapy segment held a significant share in the market in 2022 due to the growing prevalence of psychological disorders, such as anxiety and depression. An increasing number of occupational therapists further drives the segmental growth to meet the rising demand for occupational therapy services.
Private Health Insurance/Out-Of-Pocket Segment’s Growth Led by Increasing Collaborations between Healthcare Institutions
By payor, the market is segmented into public health insurance, and private health insurance/out-of-pocket.
The private health insurance/out-of-pocket segment held the largest market share in 2022. It is attributed to the increasing number of insurance holders in the country and the increasing collaborations between private health insurance companies and healthcare institutions in the U.S. Further, the market is projected to grow owing to rising initiatives by private insurance companies to cover occupational & physical therapy services.
Moreover, the public health insurance segment held a significant market share. The growth is attributed to collective initiatives by Medicare, Medicaid, and other public health insurers to provide affordable healthcare to U.S. people and increase public insurance holders in the country.
Select Medical Dominates the Market Owing to Growing Emphasis on Strategic Collaborations
The U.S. occupational & physical therapy services sector is highly fragmented, with many players operating in the market. The top players leading the market include Select Medical, Upstream Rehabilitation Inc., Athletico Physical Therapy, and ATI Physical Therapy. These players hold a significant U.S. occupational & physical therapy services market share due to increasing strategic collaborations, innovative technology launches, and the rising emphasis on inorganic growth strategies for bolstering their market presence.
Moreover, other players, such as Enhabit Home Health & Hospice, previously a part of Encompass Health Corporation, U.S. Physical Therapy, and PT SOLUTIONS, continuously engage in strategic expansion initiatives to establish their footprints in emerging regions.
An Infographic Representation of U.S. Occupational & Physical Therapy Services Market
To get information on various segments, share your queries with us
The market report provides a detailed analysis of the market. It focuses on key aspects such as competitive landscape, setting, application, and payor. Besides this, it offers insights into the industry and market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the market in recent years.
CAGR of 8.2% from 2023-2030
Value (USD Billion)
By Setting, Application, and Payor
Fortune Business Insights says that the U.S. market size was USD 49.19 billion in 2022 and is projected to reach USD 92.38 billion by 2030.
The market is expected to exhibit steady growth at a CAGR of 8.2% during the forecast period (2023-2030).
By setting, the outpatient clinics segment dominates the market.
The increasing prevalence of chronic diseases, the growing burden of the old age population in the U.S., and favorable reimbursement policies are the key drivers of the market.
Select Medical, Upstream Rehabilitation Inc., Athletico Physical Therapy, Encompass Health Corporation, and ATI Physical Therapy are the top players in the market.
“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”- U.S.-based biotechnology company focussing on treatment of chronic pain.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.”- Europe-based provider of solutions to automate data centre operations.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”- India-based manufacturer of industrial and specialty intermediates with a strong global presence.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”- One of the largest cosmetics company in the world.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”- U.S. based startup operating in the cultivated meat market.
“We received the below report on the U.S. market from you. We were very satisfied with the report.”- Global hearing aids manufacturer.
“I just finished my first pass-through of the report. Great work! Thank you!”- U.S. based solar racking solutions provider.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”- World’s leading advisory firm.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”- Germany based machine construction company.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”- Japanese manufacturing company of stationery products.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry