III. Industry Analysis
Over the last five years, the physical therapy industry experienced revenue growth as a result of the aging population and increasing acceptance of the benefits of physical therapy services. The number of adults aged 65 and older has also helped support industry revenue growth because seniors are more likely to require physical therapy services due to the increased prevalence of injuries, illnesses and chronic conditions in that age group. The number of stroke patients and sufferers of other chronic diseases will also likely increase in line with demographic growth, prompting elevated demand for rehabilitation services.
The aging population and healthcare reform are all expected to contribute to industry revenue over the next five years. The number of Americans aged 65 and older is expected to rise an annualized 3.0% during the five-year period, which will increase demand for physical therapy services. Moreover, increased funding for Medicare and Medicaid are likely to support access to healthcare, which will enable more people to receive treatment and therapy.