Back to Search
US

US Physical Therapy

healthcare
PE-OWNED

One of the largest physical therapy clinic networks.

PE-OWNED

Acquired by H.I.G. Capital2022-01-01

View PE Firm Profile

What Made It Great

Patient-focused physical therapy with personalized treatment plans.

What PE Will Likely Do

Reduction in the number of physical therapists and other clinical staff, leading to longer wait times and less personalized care for patients

MODERATEBased on: H.I.G. Capital's track record of cost-cutting and staff reductions in other acquired companies

Replacement of experienced physical therapists with less-qualified personnel to reduce labor costs

MODERATEBased on: The healthcare industry playbook that highlights the common private equity tactics of reducing staffing, upcoding billing, and cutting unprofitable services

Reduction in the quality and duration of physical therapy sessions, with a focus on maximizing the number of patients seen rather than the quality of care

MODERATEBased on: The potential for US Physical Therapy's patient-focused model to be undermined by the profit-driven goals of private equity investors

Potential closing of less profitable clinic locations, forcing patients to travel further to receive care

MODERATEBased on: The potential for US Physical Therapy's patient-focused model to be undermined by the profit-driven goals of private equity investors

Aggressive billing practices, such as upcoding of procedures and diagnoses, to maximize reimbursement from insurance providers

MODERATEBased on: The potential for US Physical Therapy's patient-focused model to be undermined by the profit-driven goals of private equity investors

Expected Timeline

0-6 monthsCompleted

0 to 6 months months

Announcements of 'operational improvements' and leadership changes, but no visible changes to patient experience

6-12 monthsYOU ARE HERE

6 to 12 months months

Staffing reductions and clinic consolidations begin, leading to longer wait times and less personalized care

12-24 months

12 to 24 months months

Noticeable decline in the quality of physical therapy services, with patients reporting shorter sessions, less experienced therapists, and reduced attention to their individual needs

24-36 months

24 to 36 months months

Potential closure of less profitable clinics, leading to access issues for patients, especially in underserved areas. Emergence of billing controversies and quality-of-care scandals

36+ months

36+ months months

Potential bankruptcy or sale of the company to another operator, with further disruption to patient care

Similar Cases

Other companies that followed a similar path after PE acquisition

What You Can Do

Actions

  • Closely monitor any changes in the quality and duration of physical therapy sessions, as well as the experience and qualifications of the therapists providing care

  • Be aware of any potential clinic closures or consolidations that could impact your access to care

  • Advocate for the preservation of the patient-focused model and high-quality physical therapy services that were the hallmark of US Physical Therapy

Alternatives

Non-profit health systemsSAFE

Community-focused healthcare

Kaiser PermanenteSAFE

Integrated managed care consortium

Share this company's PE status

"US Physical Therapy is now PE-owned. Here's what that means for you."