The physical therapy industry is booming, with an estimated value of $53.08 billion in the United States in 2023 and projected annual growth of 8.2%. As the population ages, demand for physical therapy services will only continue to rise. In fact, by 2060, an estimated 95 million seniors in the U.S. will rely on physical therapy to manage pain and improve mobility.
For those considering entering the physical therapy field, the potential for profitability is significant. According to the Bureau of Labor Statistics, the median annual wage for physical therapists was $95,620 in 2021, with the top 10% earning more than $127,110. Salaries can vary based on factors such as location, specialty, and employer, with the highest-paying opportunities often found in home healthcare services, nursing and residential care facilities, hospitals, and outpatient care centers.
How Much Revenue Can A Physical Therapy Business Generate?
Private practice physical therapy, in particular, offers the potential for substantial income. Successfully run private practices can generate between $250,000 and $2,500,000 per year in gross revenue, with the possibility of an additional $50,000 to $500,000 in annual profits for owners who are able to manage their practice efficiently and maintain a 20% pre-tax profitability.
However, owning a physical therapy business also comes with challenges. Being a skilled clinician does not necessarily translate to running a profitable business, and factors such as increased competition and industry consolidation must be taken into account. For those looking to enter the field while mitigating some of these risks, a physical therapy franchise may be an attractive option.
Approaching A PT Business As A Franchise
Franchises offer a proven business model and support system, which can be especially valuable for those new to business ownership. By leveraging the brand recognition, marketing resources, and operational expertise of an established franchise, owners can focus on providing high-quality care to their patients while benefiting from the economies of scale and collective knowledge of the larger organization.
Of course, profitability in a physical therapy franchise is not guaranteed, and due diligence is essential when evaluating potential opportunities.
Prospective owners should carefully review the franchise disclosure document, speak with current franchisees, and consult with legal and financial advisors to ensure they fully understand the costs, benefits, and risks associated with the specific franchise they are considering.
So the clear answer is YES! The physical therapy industry offers significant potential for profitability, particularly in the private practice sector. For those looking to enter the field while mitigating some of the risks of independent business ownership, a physical therapy franchise may be a viable option. By carefully evaluating potential opportunities and leveraging the resources and support of an established franchise system, owners can position themselves for success in this growing and rewarding field.
